Feedlot placements, in addition to feeder and stocker gross sales receipt information, through the first half of 2023 level to a sooner tempo than what was anticipated at the start of this 12 months, USDA economists Russel Knight and Hannah Taylor famous within the newest USDA “Livestock, Dairy, and Poultry Outlook.” Additional, bettering pasture circumstances, comparatively cheaper corn costs, and the prospect for greater fed cattle costs have fueled feeder cattle gross sales. Knight and Taylor mentioned this doubtless lowers the anticipated provide for feeder cattle out there within the second half of 2023, which is able to additional elevate feeder cattle costs.
In June, the weighted-average value for feeder steers weighing 750–800 kilos on the Oklahoma Metropolis Nationwide Stockyards was $230.87/hundredweight (cwt), a $25.00 enhance from Could and almost $68.00 greater than June 2022. Within the second week of July, and first sale of the month, costs had been almost regular from the two weeks prior at $236.94/cwt.
Accounting for current value power and tight cattle provides subsequent 12 months, USDA raised the third-quarter value forecast for feeder steers by $17.00 to $241.00/cwt. and the fourth-quarter forecast by $20 to $246.00/cwt. Additional, USDA raised the 2024 forecast by $23.00 to $250.00/cwt.
In accordance with the report, fed steer costs within the 5-area advertising area established a brand new file for the week ending June 11 of $188.75/cwt. Knight and Taylor mentioned this was doubtless buoyed by a lift in packer margins supported by weekly complete wholesale boxed beef values in June that climbed as excessive as 24% above 12 months in the past ranges to $325.29/cwt. for the week of June 23. From their respective June highs to the primary week of July, complete costs have since declined nearly 3% to $316.60/cwt. and fed steer costs have declined by greater than 3% to $182.06/cwt.
The June common value for fed steers within the 5-area advertising area was $184.51/cwt., greater than $7 above the prior-record month-to-month value in April 2023 and $42.00 greater 12 months over 12 months.
Based mostly on current information and expectations of continued agency packer demand, USDA raised the third-quarter 2023 fed steer value forecast by $5.00 to $178.00/cwt. The fourth-quarter forecast is raised $9.00 to $183/cwt. USDA raised the general 2024 forecast by $4.00 to $184.00/cwt.
