CZ Cattle Market Analytics analyst Ed Czerwien from Amarillo, TX, provides the following fed cattle and boxed beef recaps for the week ending Dec. 26, 2020.
Fed cattle recap:
The feedlot cattle trades for WE Dec 26 were basically 1 to 5 higher and the cash sales volume was much higher than the previous week.
The Five-area formula sales volume totaled 160,506 head compared to about 225,000 the previous week. The Five-area total cash steer and heifer volume was 71,611 head compared to about 52,000 head the previous week.
Nationally reported forward contracted cattle harvested was about 24,000 head this week. The nationally reported 15-30 day delivery purchases this week were 20,539 head along with 19,110 head the previous week.
Now looking at the prices. The weekly weighted average cash steer price for WE 12/26/20 for the five-area region was 109.19, which was $3.07 higher compared to the previous week and last year the same week it was 122.28 which was about $2.00 higher that week last year. The current five area weighted average live steer formula price was 109.97 this week but the live formula heifer price was 112.37, so dropping live weights are pulling cash prices closer to formula prices.
The weighted average Five-area cash dressed steer price was 171.80 which was $6.51 higher. The five-area weighted average formula price which is steers and heifers was 174.43 which was $1.39 lower.
The estimated weekly total FIS cattle harvest was reported at 419,000 head which compared to 475,000 head the same week last year. The reason last years holiday week was much higher was because Saturday last year was 82,000 head compared to only 1000 head this year.
The latest average National steer carcass weight for WE Dec 12 was 922 lbs which was exactly the same as the previous week and compared to 904 lbs the same week last year which was 2 lbs lower than the previous week last year.
Choice-Select spread on the last reported day Wednesday was at 9.62 compared to 14.36 the previous week and that compared to 4.39 spread last year.
Boxed beef recap:
The daily spot Choice box beef cutout on the last reported day Wednesday at 207.54 which was $ 1.09 lower compared to previous Friday but it had been above 210 the prior two days. Last year it was 208.96 on Friday which was $ 0.74 lower. This week the daily Choice loin, chuck, and round primals were 5-6 higher. However, the daily Choice rib primal was 51 lower this week and 175 lower during the last three weeks which is normal after the big Prime rib season rally is over but should stop dropping much lower soon which will allow the cutout to get higher.
The weekly average Choice cutout which includes all types of sales including the daily Choice cutout was 205.60 which was only $1.51 lower.
There were 3764 total loads sold for the week which was 3064 loads lower than the previous week, but these last two big holiday weeks are always very low each year.
The out-front sales which get delivered after 21 days were 636 loads which was 1116 loads lower than last week.
The exports as reported on the Box Beef report were 452 loads and that was 495 loads lower compared to the previous week but they are always low now because of holiday shutdowns at the export loading locations. The year to date total for these box beef exports is over 2500 loads higher than last year even with the big drop lower with plants shut down during the beginning of the medical epidemic during the second quarter, so very good during the rest of the year. This week 81 loads were sold to our NAFTA neighbors and 371 loads were going overseas.
Formula sales were at 1950 loads which was 1038 loads lower than last week and about 52 percent of the total loads sold this week. However, it still included about 1.5 million lbs of Choice ribeye products but that is quite a bit lower than the previous weeks so it is continuing to drop much lower.
Taking a look at the major primal cuts. The weekly average Choice Chuck and Round primal were 4-6 higher and should continue to improve now.
The weekly average Choice loin primal was 1 higher. The weekly average Choice rib was 43 lower following the daily sales and will drop much lower again next week because the formula sales should follow this week’s big drop in daily sales prices.
The daily cow cutout on the last reported day Wednesday was $ 0.94 higher at 168.89 and the 90% trimmings were at 203.56 which was $ 0.22 higher compared to the previous Friday.
The latest report of Imported meat passed for entry into the US for week ending Dec 19 showed 17,637 metric tons of fresh beef which was about 400 lower than the previous week and about 1200 lower than last year. The year to date total for these imports is 10 % higher than last year.
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