Tumbling wholesale beef values pressured cattle markets this week. On the one hand, declining wholesale beef values point to tougher sledding with consumers, especially as more volume enters the market. On the other hand, spot Live Cattle futures continue to offer cash support to fed cattle.
April 12, 2014
“Perhaps feeder markets have reached the point of topping, or even tipping, as the word ‘lower’ reared its ugly heady in market reports across the country for the first time in months,” said analysts with the Agricultural Marketing Service (AMS) Friday. “However, it would be difficult to call demand any lighter and crowds were reportedly sizeable in the few major auction markets that had a good run this week.”
Overall, feeder cattle and calves sold unevenly steady, mostly from $3/cwt. lower to $3 higher. At least part of it has to do with the current mix of cattle being offered.
“Most pressure was seen on heavyweight feeders over 800 lbs. and soft new-crop calves that are progressively making up a larger percentage of receipts,” AMS analysts say. “As a whole, offerings are currently less attractive than usual with receipts mostly made up of
growing-lot yearlings and fall-born calves, both carrying considerable flesh.”
Grass-ready cattle continue to receive the stoutest demand. Futures prices continue to suggest room to grow, too. They closed an average of $1.85 higher week-to-week.
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Wholesale beef prices continued to be the primary stumbling block this week. Choice boxed beef cutout value was $6.62/cwt. lower week-to-week, closing at $222.12/cwt. Select was $4.91 lower week-to-week at $212.46.