• This week in the markets – Cash fed cattle were $3 lower this week and feeder cattle were steady to $5 lower this week. The August live cattle futures contract closed $1.70 lower this week and August feeder cattle futures closed $1.50 lower. The Choice Box Beef price was $1.20 lower this week. Cash barrow and gilt prices were $.50 higher for the week. July lean hog futures were down $4.50 this week. Pork cutout value lost $4 this week with weakness in hams, bellies, and loins.
• Livestock Slaughter – Beef production in May was .9% higher than a year ago as cattle weights remain steady and 1.1% growth in cattle slaughter. Year-to-date beef production is up 1%, drive by 2.1% higher cattle slaughter. Pork production was 2% higher in May relative to a year ago. With both higher weights and larger slaughter numbers. Year-to-date pork production is up 3.3%, driven by a 3% increase in hog slaughter. Heifer slaughter was up 5.8% relative to a year ago, suggesting a weak appetite for expansion of the beef cow herd. Beef cow slaughter is 2.7% higher year-to-date as we saw increases in Region 8 and Region 10 that more than offset declines in Region 6 and Region 7.
• Cold Storage – Beef in Cold Storage was down 13 percent in May relative to a year ago, despite the growth in production. Suggesting good beef movement in domestic markets. Pork in Cold Storage is up .8% relative to a year ago, with a whopping 25% increase in loins in Cold Storage, there were also higher belly and ham stocks in May.
• Cattle on Feed – Came in at pre-report estimates across the board with cattle placed in May totaling 97.2 percent of a year ago. Cattle on Feed as of June 1 coming in at 101.6. The 11.74 million head of June 1 inventory is a record high since the series began in 1996.
• Next week’s reports – Hogs and Pigs report on Thursday and Acreage and Restaurant Performance on Friday.
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