June Cattle Feeding Projections
It has certainly been an up and down month in the cattle feeding world with the continued onslaught of dealing with COVID 19. Many of us no longer want to hear that terminology with the current fed beef offerings. Rolling into the 4th of July and prime grilling season one would hope that our cash offerings begin to increase however many market influences seem to be against that.
Dealing with the backlog of heavy cattle right now continue to weigh on the markets, our current HCW in comparison to a year ago is about 53 lbs higher which results in more beef on the market amidst the amount of continued heavy cattle that remain to be marketed. There will also most likely continue to be heavy cattle as feedlot operators tried to hold cattle back with many looking to hit the late summer, early fall marketing months. The quality of beef has never been in question with longer days on feed and heavier cattle comes higher choice/prime cutouts, but also brings more Y4’s and 5’s.
Volume sales are down as not many are interested in selling in the current market albeit those cattle that were held back or backlogged.
The cattle on feed report looks to be lower with less cattle moving and not much cash purchase interest. However looking ahead with current fed cattle offerings there are some highlights to the bottom line with black ink on many colored cattle. Its nice to see cattle purchased now potentially looking at a profit based on todays figures. The fall run should surely be a large one based on the number of head that have not been marketed yet. Hopefully the long term live cattle outlook will be stronger as we continue through summer.
Remember to get out and enjoy beef on the grill. Happy Father’s Day to all those fathers who continue to teach hard work, value and how to cook a great steak! Enjoy your day!