It’s no surprise to anyone following the cash fed cattle market that total monthly cattle slaughter is running higher than a year ago and the 2012-16 average. But it’s in what category the increase is taking place that’s important. Cow slaughter continues to rise.
USDA National Agricultural Statistics data compiled by the Livestock Marketing Information Center shows April’s weekly average federally inspected cattle slaughter at 618,786 head, up 14,127, or 2.34%, from February’s 604,659 head; up 12,536, or 2.07%, from April 2017’s 606,250 head, and up 40,372, or 6.98%, from the previous five-year average of 578,414 head.
STEER, HEIFER SLAUGHTER UP FROM AVERAGE
It’s interesting to point out that steer and heifer slaughter is up from the 2012-2016 average, they aren’t notably higher than last year so far this year.
Average monthly steer slaughter through April totaled 5.253 million head, down 6,000, or 0.11%, from the 2017 total of 5.259 million but up 322,000, or 6.53%, from the previous five-year average total of 4.931 million.
Average monthly heifer slaughter through April totaled 2.881 million head, up 177,000, or 6.55%, from the 2017 total of 2.704 million and up 70,000, or 2.49%, from the previous five-year average of 2.811 million.
However, an increase in steer and heifer slaughter was expected as the US herd grew the last few years. These numbers, therefore, just confirm what was known from other USDA numbers like total herd size and cattle on feed.
What is more telling is the number of cows, beef and dairy, that are going to slaughter.
COW SLAUGHTER UP
Total monthly federally inspected cow slaughter has been up every month this year, and the difference from previous years is growing as the months progressed.
NASS data showed monthly cow slaughter through April totaled 2.052 million head, up 166,000, or 8.80%, from the 2017 total of 1.886 million and up 115,000, or 5.94%, from the 2012-2016 average of 1.937 million.
Monthly federally inspected beef cow slaughter through April totaled 965,500 head, up 101,500, or 11.7%, from 864,000 in the year-earlier period and up 59,920, or 6.62%, from the previous five-year average of 905,580 head.
Monthly federally inspected dairy cow slaughter through April totaled 1.086 million head, up 64,000, or 6.26%, from 1.022 million in the 2017 period and up 55,000, or 5.33%, from the previous five-year average of 1.031 million.
The point is that much of the increase, especially the unexpected increase, in total cattle slaughter is coming from cows. This could be the leading edge of an annual decline in total herd size this year.
CATTLE, BEEF RECAP
Only 225 head of fed cattle sold Wednesday on the Livestock Exchange Video Auction at $110 per cwt, versus sales four weeks previous at $122.40.
Cash cattle trading last week took place at mostly $110 per cwt on a live basis with a few in Iowa at $111, down $5 to $7 from the previous week. Dressed-basis trading took place at $177 per cwt, down $7 to $8.
However, many sellers declined those bids, and showlists are larger this week.
The USDA choice cutout Wednesday was up $1.12 per cwt at $228.68, while select was up $0.73 at $204.38. The choice/select spread widened to $24.30 from $23.91 with 126 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Tuesday, was $134.86 per cwt, down $0.18. This compares with Wednesday’s Aug settlement of $148.55, up $3.57.