Within the 14 weeks from mid-July to mid-October, the amount of feeder cattle within the mixed weekly cattle public sale abstract was up 19.7 % 12 months over 12 months, a rise of over 66,000 head. As anticipated, bigger summer time volumes resulted in smaller volumes for the autumn. The feeder quantity the previous two weeks has been down by 6.1 % in comparison with the identical interval final 12 months. Feeder volumes are anticipated to be smaller by November.
Feeder cattle costs at Oklahoma auctions elevated counter-seasonally by the summer time to August peaks almost equal to the spring seasonal peaks earlier than dropping by September into early October. A pointy lower in Feeder futures contract costs over this era was the key issue within the money market lower. Since mid-October, Feeder futures costs and money public sale have moved larger.
For the week ending October 28, the mixed public sale worth of 480-pound, M/L, No. 1 steers was $190.08/cwt. ($912.38/head) and the worth of 781-pound steers was $176.20/cwt. ($1376.12/head). This is a rise in worth of $463.74/head and a $1.56/pound worth of achieve for 301 kilos of achieve.
In fact, it takes time so as to add weight to feeder cattle and the worth of achieve is even larger given Feeder futures costs for subsequent spring. Feeder futures costs mirror a better trending feeder market within the coming months. Present March Feeder futures indicate a worth of $183/cwt. for the 780-pound steer and a worth of achieve $1.71/pound in March for the 480-pound steer bought now. Drought has decreased the provision of wheat pasture and different forages and makes it troublesome for stocker producers to benefit from these engaging stocker margins and arbitrage the markets within the typical vogue. Some producers could also be contemplating extra artistic backgrounding packages to benefit from the present feeder market state of affairs.
The amount of cull cows in Oklahoma auctions continues to run properly above final 12 months. The amount of cull cows and bulls in auctions has averaged double the extent of 1 12 months in the past since mid-July and has been larger almost each week of the 12 months. This enhance has added roughly 50,000 head of cull cows above 12 months in the past ranges within the seven federally reported Oklahoma auctions. Different cull cows are marketed by smaller auctions and on to cow packers. These numbers contribute to the nationwide complete of beef cow slaughter up almost 13 for the 12 months up to now by mid-October. Cull cow costs dropped about 25 % from late August to mid-October however did enhance barely final week. Common dressing Breaker cows have been priced at $71.99/cwt.; Boning cows at $67.26/cwt. and Lean cows at $60.82/cwt.
Market fundamentals are usually optimistic for cattle markets going ahead. Improved futures costs, stronger boxed beef and fed cattle costs are all supportive for feeder cattle markets. Cattle slaughter continues to be operating massive however ought to taper off towards the tip of the 12 months. Except sudden exterior market strain develops, cattle costs are anticipated to complete the 12 months robust and the very best costs of the 12 months could also be recorded earlier than the tip of the 12 months.
Dr. Derrell Peel discusses the impact of current rains on livestock markets on SunUp TV from October 29, 2022. https://www.youtube.com/watch?v=iGCUAcPjf0Q
