Prices for feeder steers in the Southern Plains have leveled, opening the possibility for gains on last year’s fall prices.
More or less flat prices for 700- to 800-pound feeder steers in the Southern Plains fits the 2018-2022 average, although prices declined through most weeks of the period last year, according to USDA Agricultural Marketing Service data compiled by the Livestock Marketing Information Center in Denver.
Weekly prices for 400- to 500-pound steer calves have turned higher, marking a seasonal inclination a few weeks early, the USDA data showed.
FEEDER STEER PRICES INCH HIGHER
Last week’s USDA average price for 700- to 800-pound feeder steers was $255.60 per cwt, up $3.42, or 1.36%, from $252.18 a week earlier, up $4,40, or 1.75%, from $251.20 in the same week last year and up $100.90, or 65.2%, from the previous five-year average of $154.70 per cwt.
The recorded prices give little indication of where prices will go from here, a market analyst said. The average line on a price graph is pretty much sideways for the rest of the year, yet last year, prices declined, and this year, prices are turning higher.
Weekly slaughter steer prices in the Southern Plains don’t give much hint either, the analyst said. Prices have gone up the last three weeks, but turned lower last year in another couple of weeks. The 2018-22 average has weekly price turning higher in mid-September with only a slight decline in early December.
STEER CALF PRICES TURN HIGHER
Last week’s price for 400- to 500-pound steers was reported at $335.28 per cwt, up $12.71, or 3.94%, from $322.57; up $33.87, or 11.2%, from $301.41 in the same week last year, and up $160.51, or 91.8%, from the previous five-year average of $174.77 per cwt.
USDA-AMS weekly prices for the calves tend to rise starting the first week of October, according to the 2018-22 average, although last year, they declined until the third week of October before climbing unevenly through the end of the year.
It’s very possible that the normal fourth-quarter price rise began a little early this year, the market analyst said.
Trying to put some extra grazing weight on these calves before selling them to the feedlots could be a problem in many parts of the Plains, the analyst said. Drought conditions were said to be cutting pasture and range conditions faster than normal, and if pastures are bad, winter wheat grazing also is problematic.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $187.00 per cwt to $189.35, compared with last week’s range of $185.99 to $188.49 per cwt. FOB dressed steers, and heifers went for $292.16 per cwt to $298.16, compared with $290.85 to $297.16.
The USDA choice cutout Thursday was up $0.13 per cwt at $319.26 while select was up $1.15 at $293.52. The choice/select spread narrowed to $25.74 from $26.76 with 119 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $349.83 per cwt, and 50% beef was $64.79.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.40 a bushel over the Dec corn contract, which settled at $4.06 3/4 a bushel, up $0.02.
No deliveries were tendered Thursday against the Oct contract. Six steer contracts were retendered at one, and six were demanded at one.
The CME Feeder Cattle Index for the seven days ended Wednesday was $250.25 per cwt, up $0.78. This compares with Thursday’s Oct contract settlement of $246.72, up $0.62.