CZ Cattle Market Analytics analyst Ed Czerwien from Amarillo, TX, provides the following fed cattle and boxed beef recaps for the week ending June 5, 2021.
Fed cattle recap:
The feedlot cattle trades for WE June 5 were mostly steady again, and the cash sales volume was lower than the previous week because of the holiday shutdowns.
The Five-area formula sales volume totaled 175,424 head compared to about 237,000 the previous week. The Five-area total cash steer and heifer volume was 56,206 head compared to about 74,000 head the previous week.
Nationally reported forward contracted cattle harvested was about 50,000 head this week and packers have 194,000 head for June. The nationally reported 15-30 day delivery purchases this week were 16,704 head along with 12,000 head for the previous week.
Now looking at the prices. The weekly weighted average cash steer price for WE 06/05/21 for the five-area region was $119.92, which was $0.28 higher compared to the previous week and last year the same week it was $112.39 which was about $3.30 lower that week last year. The same week in 2015 it was $155.59 even though the daily Choice cutout now was now about 95 dollars higher than 2015.
This week the current five area weighted average live steer formula price was $121.65 this week and the live formula heifer price was $124.46. The weighted average Five-area cash dressed steer price was $190.68 which was only $0.01 lower. The five-area weighted average formula price which is steers and heifers was $193.75 which was $0.68 higher.
The estimated weekly total FIS cattle harvest was reported at 538,000 head and compared to 628,000 head the same week last year. Cattle harvest numbers this year and last year were down mostly because of the safety provisions built into the packing plants to protect employees during the medical epidemic which lowered the numbers of people that could work on a production line.
The latest average National steer carcass weight for WE May 22 was 888 lbs which was 6 lbs lower than the previous week and compared to 894 lbs the same week last year which was 7 lbs lower than the previous week last year.
Choice-Select spread on Friday Jun 04 was at 27.25 compared to 30.07 the previous week and that compared to 15.06 spread last year.
Boxed beef recap:
The daily spot Choice box beef cutout ended the week on Friday June 05 at $338.98 which was $8.01 higher compared to previous Friday but it had been over 340 during the middle of the week. Last year it was $261.48 on the same Friday which was about $102 lower, so it had continued to drop much lower last year. However, in 2015 it was about $244 the same Friday so, it is now about 95 higher than 2015 when fat cattle prices were much higher than they are now.
The end of this week the daily Choice Chuck and Round primal were 6 to 13 higher. The daily Choice Rib and Loin primal were 0 to 8 higher. The weekly total for the daily cutout was 512 loads and about 9 % of the weekly total loads sold.
The weekly average Choice cutout which includes all types of sales including the daily Choice cutout was 326.07 which was $6.35 higher. It now continues much higher than all normal years but not last year.
The total sales were 5493 total loads sold for the week which was 1571 loads lower than the previous week but a typical holiday week.
The out-front sales which get delivered after 21 days were 977 loads which was 931 loads lower than last week.
The exports as reported on the Box Beef report were 618 loads which was 1134 loads lower compared to the previous week. This week 75 loads were sold to our NAFTA neighbors and 543 loads were going overseas.
Formula sales were at 3037 loads which was 360 loads lower than last week and about 55 percent of the total loads sold this week. The formula sales included about 2.3 million lbs of Choice ribeye products along with about 2 million lbs of Choice loin strips.
Taking a look at the major primal cuts which impact the cutout value and the weekly average numbers include all of the different types of sales. The weekly average Choice Chuck and Round primal were 7 to 8 higher. The weekly average Choice Rib and the Loin primal were 5 to 7 higher and the Rib is now higher than last year along with setting a new all-time record high with big demand from restaurants.
The daily cow cutout ended the week on Friday Jun 04 was $ 8.31 higher at $219.58 and the 90% trimmings were at $270.32 which was $ 13.56 higher compared to the previous Friday.
The latest report of Imported meat passed for entry into the U.S. for week ending May 29 showed 21,017 metric tons of fresh beef which was about 200 higher than the previous week and about 1400 lower than last year. The year to date total for these imports is 8 % lower than last year. The top 4 countries are Canada which is number one and is 15 % higher than last year, Mexico is the second highest but 10 % lower than last year, New Zealand is 6 % lower, and Australia which is 44 % lower.
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