040918 Beef Demand Strong Through August

University of Missouri - Columbia, MO - Beef demand through August continued very strong even though wholesale prices through September indicate the bloom may be fading on both beef and broiler demand. Our estimate of beef demand for January through August was up by nearly 7.5% from a year earlier.

The retail price through August for broilers continues to show a strong demand for boilers for the first eight months of the year. However, as with beef, wholesale prices of broilers have indicated weakness in recent weeks.

Both pork and live hog demand continue strong. Live hog demand for January through August was up nearly 12% from 12 months earlier and it is quite obvious that this strong live hog demand held through September.

The demand for live fed cattle is substantially weaker than a year ago due to the loss of beef exports because of BSE.

Even though feeder cattle prices have weakened some from the highs they are still very strong. Cattle being placed on feed at the current time will need a substantial increase in fed cattle prices to break even.

Fed cattle prices weakened some this week with the weighted average prices for the five feeding areas at $81.41 down $2.44 from the week ago through Thursday. The average carcass price for the first four days of the week was down $3.39 per cwt at $128.44 per cwt.

The range in prices for the Midwest direct trade was $80.00 to $82.25 per cwt with a weighted average of $81.00. The range in prices for the high plains was $N/A per cwt to $ N/A per cwt. The weighted average price for the high plains was $ N/A per cwt.

Some losses were experienced in wholesale beef prices this week. Yield 3 choice beef at $132.19 per cwt. Friday morning was down $3.95 for the week. Select, yield 2-3 beef was also down by $3.01 per cwt at $129.37 per cwt.

The differential in price for choice and select beef indicated marketings are not real current.

Feeder cattle prices at Oklahoma City this week were $2-3 per cwt lower than a week earlier. Steer and heifer calf prices were steady.

The prices for medium and large frame, number one steers at Oklahoma City by weight groups were: 400 to 500 pounds $125 to 141.50 per cwt, 500 to 600 pounds $114 to 129 per cwt, 600 to 700 pound calves $108 to 116.25 per cwt, 700 to 750 pound calves $105 to 114.50, 600 to 700 pound yearlings $115 to 125 per cwt, 700 to 800 pounds $114 to 123.25, and 800 to 1000 pounds $100 to 114.50 per cwt.

Slaughter this week under Federal Inspection was estimated at 643 thousand head - down 2.3% from a year earlier.

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