CZ Cattle Market Analytics analyst Ed Czerwien from Amarillo, TX, provides the following feeder cattle price information for February 2021.
The feeder cattle prices started to creep higher in February after dropping lower in January but the last week in February dropped lower so that lowered the monthly average prices slightly but still higher than January for most of the weights.
Most of the prices are starting to get closer to last year after being lower in January. The two key items that have kept a lid on feeder cattle prices has been higher cost for feed items and lower fat cattle prices compared to Box Beef meat prices.
The weekly average Choice cutout has been $231 the last couple of weeks and the daily Choice cutout topped out around $240 but the cash fat cattle prices have been around $114 for several weeks which was still lower than last year. During 2014 and 2015 when the weekly average Choice cutout was around $231 the cash fat cattle prices were above $140 but the packers were losing money during those years which forced them to close down quite a few plants.
Those plant closures have really impacted fat cattle prices now with much bigger numbers of cattle along with heavier weights which has really impacted the bidding on cash sales. Normally when the backed-up fat cattle numbers get corrected the prices will improve and push feeder cattle prices higher, also the decreasing calf crop numbers should start to help feeder cattle prices improve.
The weekly combined total for all reported auctions in North Dakota, South Dakota, and Nebraska for Medium and Large 1 and 1-2 steers weighing 800 to 899 lbs showed 9278 head compared to 4894 head the previous week. The weekly 02/27/21 combined weighted average price for these three states showed $135.53 for those 9278 head that had a weighted average weight of 846 lbs. That compared to 137.95 the previous week that weighed 842 lbs.
Image credit Ed Czerwien.
The February monthly combined total for all reported auctions in North Dakota, South Dakota, and Nebraska for Medium and Large 1 and 1-2 steers weighing 800 to 899 lbs showed 23687 head compared to 26084 head the previous month and 22088 head last year. The monthly combined weighted average price for these three states showed $135.78 for those 23687 head that had a weighted average weight of 845 lbs. That compared to $134.56 the previous month and $136.74 last year. Last year the lowest price was 122.01 in April during the early medical epidemic. Last year’s highest price was $144.31 during August.
The February monthly combined total for all reported auctions in North Dakota, South Dakota, and Nebraska for Medium and Large 1 and 1-2 steers weighing 700 to 799 lbs showed 35,803 head compared to 47,511 head the previous month and 39,361 head last year. The monthly combined weighted average price for these three states showed $143.96 for those 35,803 head that had a weighted average weight of 748 lbs. That compared to $141.49 the previous month and $146.32 last year. Last year the lowest price was 133.80 in April during the early medical epidemic. Last year’s highest price was $152.89 during August.
The February monthly combined total for all reported auctions in North Dakota, South Dakota, and Nebraska for Medium and Large 1 and 1-2 steers weighing 600 to 699 lbs showed 33,762 head compared to 56,390 head the previous month and 37,265 head last year. The monthly combined weighted average price for these three states showed $155.49 for those 33,762 head that had a weighted average weight of 652 lbs. That compared to $152.11 the previous month and $159.44 last year. Last year the lowest price was 149.31 in April during the early medical epidemic. Last year’s highest price was $161.64 during August.
The February monthly combined total for all reported auctions in North Dakota, South Dakota, and Nebraska for Medium and Large 1 and 1-2 steers weighing 900 to 999 lbs showed 9779 head compared to 8285 head the previous month and 6001 head last year. The monthly combined weighted average price for these three states showed $129.92 for those 9779 head that had a weighted average weight of 937 lbs. That compared to $130.16 the previous month and $130.44 last year. Last year the lowest price was 115.06 in April during the early medical epidemic. Last year’s highest price was $139.68 during January and then $139.39 in August.
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