CZ Cattle Market Analytics analyst Ed Czerwien from Amarillo, TX, provides the following fed cattle and boxed beef recaps for the week ending August 7, 2021.
Fed cattle recap:
The feedlot cattle trades for WE Aug 7 were mostly 1 to 3 higher and the cash sales volume was higher than the previous week.
The Five-area formula sales volume totaled 231,166 head compared to about 229,000 the previous week. The Five-area total cash steer and heifer volume was 81,007 head compared to about 64,000 head the previous week.
Nationally reported forward contracted cattle harvested was about 34,000 head this week and packers have 150,000 head for August. The nationally reported 15-30 day delivery purchases this week were 27,943 head along with about 22,000 head for the previous week.
Now looking at the prices. The weekly weighted average cash steer price for the five-area region was $123.83, which was $2.15 higher compared to the previous week and last year the same week it was $101.34 which was about $2.70 higher that week last year. The same week in 2015 it was $151.13 even though the daily Choice cutout now was about 60 dollars higher than 2015. This week the current five area weighted average live steer formula price was $122.29 and the live formula heifer price was $123.24.
The weighted average Five-area cash dressed steer price was $198.20 which was $0.81 higher. The five-area weighted average formula price which is steers and heifers was $195.60 which was $0.23 lower.
The estimated weekly total FIS cattle harvest for week ending Aug 7 was reported at 641,000 head and compared to 633,000 head the same week last year. The year to date total is still climbing over 800,000 head higher than last year.
The latest average National steer carcass weight for WE July 24 was 894 lbs which was 6 lbs higher than the previous week and compared to 903 lbs the same week last year which 4 lbs higher than the previous week last year.
Choice-Select spread on Friday Aug 6 was at 19.17 compared to 19.27 the previous week and that compared to 12.72 spread last year.
Boxed beef recap:
The daily spot Choice box beef cutout ended the week on Friday Aug 06 at $296.26 which was $17.80 higher compared to previous Friday so climbing much higher again It is still continues to be much higher than all previous years yet. Last year it was $205.47 on the same Friday, which was about $2.20 higher. During 2015 it was $236.34 on the same Friday so about 60 dollars higher now. The end of this week the daily Choice Chuck and Round primal were $14 to $15 higher. The daily Choice Rib was $46 higher and Loin primal was $16 higher. The weekly total for the daily cutout was 602 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 280.58 which was $14.09 higher and climbing much higher than all previous years now.
The total sales were 6903 total loads sold for the week which was 275 loads lower than the previous week.
The out-front sales which get delivered after 21 days were 1509 loads which was 134 loads lower than last week. The largest out-front sales this week included about 1.7 million lbs of Choice Ribeye products that were over 150 higher than the same current formula prices, so good volume and very good prices.
The exports as reported on the Box Beef report were 990 loads which was 137 loads higher compared to the previous week. This week 123 loads were sold to our NAFTA neighbors and 867 loads were going overseas.
Formula sales were at 3393 loads which was 7 loads higher than last week and about 49 percent of the total loads sold this week. The formula sales included about 1.8 millions lbs of Choice ribeye products along with about 1.3 million lbs of Choice loin strips so steak products are starting to have good volume ahead of Labor Day.
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 10 to 14 higher.
The weekly average Choice Rib primal was 54 higher helped by the out-front sales and the Loin primal was 5 higher so they both continue to follow the movement in the daily prices. They have turned around higher and earlier than all previous years.
The daily cow cutout ended the week on Friday Aug 6 was $ 0.21 lower at $229.28 and the 90% trimmings were at $275.97 which was $ 0.77 lower compared to the previous Friday.
The latest report of Imported meat passed for entry into the U.S. for week ending July 31 showed 23,404 metric tons of fresh beef which was about 1300 lower than the previous week and about 4400 lower than last year. The year to date total for these imports is 8 % lower than last year so it continues to be much lower. The top 4 countries are Canada which is number one and is 9 % higher than last year, Mexico is the second highest but 9 % lower than last year, New Zealand is 7 % lower, and Australia which is 42 % lower.
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