CZ Cattle Market Analytics analyst Ed Czerwien from Amarillo, TX, provides the following fed cattle and boxed beef recaps for the week ending June 19, 2021.
Fed cattle recap:
The feedlot cattle trades for WE June 19 were mostly 2 to 3 higher and the cash sales volume was lower than the previous week.
The Five-area formula sales volume totaled 244,554 head compared to about 222,000 the previous week. The Five-area total cash steer and heifer volume was 67,600 head compared to about 83,000 head the previous week.
Nationally reported forward contracted cattle harvested was about 48,000 head this week and packers have 194,000 head for June. The nationally reported 15-30 day delivery purchases this week were 17,187 head along with 32,000 head for the previous week.
Now looking at the prices. The weekly weighted average cash steer price for the five-area region was $122.84, which was $2.81 higher compared to the previous week and last year the same week it was $100.78 which was about $3.70 lower that week last year. The same week in 2015 it was $150.24 even though the daily Choice cutout now was still much higher yet. This week the current five area weighted average live steer formula price was $121.71 this week and the live formula heifer price was $122.36.
The weighted average Five-area cash dressed steer price was $195.87 which was $5.18 higher. The five-area weighted average formula price which is steers and heifers was $194.55 which was $0.18 lower.
The estimated weekly total FIS cattle harvest was reported at 663,000 head and compared to 646,000 head the same week last year.
The latest average National steer carcass weight for WE June 5 was 891 lbs which was 7 lbs higher than the previous week and compared to 892 lbs the same week last year which was 1 lbs higher than the previous week last year.
Choice-Select spread on Friday Jun 18 was at 39.67 compared to 32.35 the previous week and that compared to 9.81 spread last year.
Boxed beef recap:
The daily spot Choice box beef cutout ended the week on Friday June 18 at $323.28 which was $14.28 lower compared to previous Friday which is normal after the Father’s Day product has been purchased. Last year it was $213.72 on the same Friday, which was about $17 lower, so it had continued to drop and was about $150 lower in three weeks last year. The end of this week the daily Choice Chuck and Round primal were 2 to 3 lower. The daily Choice Rib and Loin primal were 31 to 44 lower which is normal now after the big grilling season rally slows down. The weekly total for the daily cutout was 554 loads and about 8 % of the weekly total loads sold.
The weekly average Choice cutout which includes all types of sales including the daily Choice cutout was 322.04 which was $2.65 lower. It still continues much higher than all years and even last year now.
The total sales were 6422 total loads sold for the week which was 20 loads higher than the previous week.
The out-front sales which get delivered after 21 days were 980 loads which was 40 loads lower than last week.
The exports as reported on the Box Beef report were 797 loads which was 8 loads lower compared to the previous week. This week 94 loads were sold to our NAFTA neighbors and 703 loads were going overseas.
Formula sales were at 3686 loads which was 2 loads lower than last week and about 58 percent of the total loads sold this week. The formula sales included about 3 million lbs of Choice ribeye products along with about 2 million lbs of Choice loin strips so good volume yet.
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 3 lower to 2 higher. The weekly average Choice Rib was 5 lower and the Loin primal was 9 lower so the grilling season is topping out.
The daily cow cutout ended the week on Friday Jun 18 was $ 4.47 higher at $226.60 and the 90% trimmings were at $277.22 which was $ 6.15 higher compared to the previous Friday. The demand for hamburgers normally increases for grilling later in the summer during hot weather every year which is happening now.
The latest report of Imported meat passed for entry into the U.S. for week ending June 12 showed 22,703 metric tons of fresh beef which was about 2600 higher than the previous week and about 25 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 12 % higher than last year, Mexico is the second highest but 11 % lower than last year, New Zealand is 4 % lower, and Australia which is 44 % lower.
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