Cash cattle were lower this week. Cash fed cattle were down about $3-$5/cwt. In Texas, live prices were called at $119/cwt on Thursday. In Nebraska on Thursday, live and dressed prices were called at $119-$119.50/cwt and $190-$192/cwt, respectively. Oklahoma City feeder steers and heifers were steady again this week. Steer calves were steady to $2/cwt lower and heifer calves were $1-$3/cwt lower. In Mississippi markets, steers were called mixed and heifers were steady. Cows were $3-$5/cwt lower and bulls were $2-$3/cwt lower.
Live and feeder cattle futures got rocked this week. Early week drops were mild compared to Wednesday through Friday. Lower cash cattle prices started the tumble and nothing outside of steady Choice beef came across the wire with a positive spin. Weakness in global economic conditions continue to keep demand expectations low despite a strong week for U.S. equity markets. On Thursday beef exports showed signs of cracking, but cumulative volume in 2012 remains above year ago levels.
Corn futures were hit hard on Tuesday when USDA’s monthly supply and demand report made only minimal changes to old crop and new crop corn estimates. Pre-report expectations were for corn stocks to tighten. A more detailed write-up on the report can be found here. Rains across the Corn Belt and weaker than expected export sales added further pressure.
Wholesale beef prices were mixed again this week. Choice wholesale beef finished mostly steady with a weekly average of $197.82/cwt, up $0.72. Select slid each day and ended at $182.20/cwt, down $2.27.
World Agricultural Supply and Demand Report – Beef:
The World Agricultural Outlook Board released their monthly supply/demand report Tuesday (Jun 12). Beef production is estimated at 25.088 and 24.575 billion pounds for 2012 and 2013, respectively. The 2012 estimate was 102 million pounds lower than last month, while the 2013 estimate was 10 million higher than May.