Weekly US Cattle Outlook - Cow Slaughter Up
US - Weekly Cattle Outlook, 25th May, 2007 - Weekly review of the US cattle industry, written by Glenn Grimes and Ron Plain.Cow slaughter through the week ending May 5 was up 15.4 percent from a year earlier. Dairy cow slaughter was up 15.7 percent and beef cow slaughter was up 15.1 percent. For the four weeks ending May 5, total cow slaughter was up 12.2 percent.
Beef cow slaughter for late March and early April moved close to a year earlier but has increased again relative to last year in late April and early May. The recent increase in beef cow slaughter may be due to the dry weather in the southeastern part of the U.S.
As indicated in last week's letter, the May 1 Cattle on Feed report came in close to trade expectations. The number on feed was down 2.3 percent from a year earlier and down 3 percent from a month earlier. The number of cattle placed on feed during April was down 2.8 percent from 12 months earlier, and fed marketings during April were up 2 percent from the same month in 2006.
There was little change in the mix as to weights of cattle placed on feed during April from a year earlier. The number placed weighing less than 600 pounds was down 2.6 percent, the number weighing 600-699 pounds was down 0.8 percent, the number weighing 700-799 pounds was down 3.2 percent and the number placed weighing over 800 pounds was down 2.8 percent from 2006.
Beef cold storage stocks on April 30 of this year were down 6.7 percent from a year earlier and down 3.3 percent from a month earlier. Beef cuts stocks were down 2 percent from last month but up 9 percent from a year earlier. Boneless beef stocks were down 4 percent from March 31 and down 9 percent from a year earlier.
Pork cold storage stocks on April 30 were the same as a year earlier. The best news is that chicken cold storage stocks on April 30 were down 28 percent from 12 months earlier.
The live-cattle-futures traders considered the May 1 Cattle on Feed reports to be positive. All contracts settled Monday up $0.22 to $1.00 per cwt.
Wholesale beef prices Friday morning showed Choice beef at $158.05 per cwt, down $8.35 per cwt from a week earlier. Select beef prices were down $6.10 cwt at $147.94 per cwt.
Corn producers made good progress last week in planting corn. As of the week ending May 20, plantings were 92 percent completed, up one percentage point from last year and up six percentage points from the five-year average.
Fed cattle prices for the week through Thursday for the five-market area showed a weighted average live price of $94.65 per cwt, down $2.20 per cwt from a week earlier. The weighted average carcass price for the five-market area through Thursday was down $3.87 per cwt at $150.50 per cwt from a week earlier.
Feeder cattle and calves prices at Oklahoma City this week were mostly steady with last week. The prices for medium and large frame number one steers by weight groups were: 400-500 pounds $127.50-134 per cwt, 500-600 pounds $120.50-130 per cwt, 600-700 pound calves $105-118.50 per cwt, 650-700 pound yearlings $116-120.75 per cwt, 700-800 pounds $107.50-113.85 and 800-1,000 pounds $96.85-109.25 per cwt.
Slaughter this week under Federal Inspection was estimated at 696 thousand head, no change from a year earlier.
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