Cattle Situation and Outlook
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- Adelia Reynolds
- 5 years ago
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1 Cattle Situation and Outlook Tim Petry, Livestock Economist SEP 2018 Outlook pptx
2 Livestock Fundamental Highlights Record meat production in 2018 (beef, pork, chicken & total) Prices for fed and feeder cattle slightly above last year at this time Cow prices lower Other livestock prices below last year Beef cow herd expanding rate moderating peak 2020? 2018 US calf crop up 692,000 (1.9%) Beef demand robust US economy strong record beef exports in 2017 and 2018 Top 4 US beef customers (Japan, S. Korea, Mexico, Canada) in trade negotiations Normal seasonal weakness for fall calf prices expected
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4 WASDE U.S. Meat Production and Prices Forecast Change from Forecast Change From 2018 Production Billion Pounds Pounds Pounds Pounds Percent Pounds Percent Beef Pork Broilers Turkey Total meat Prices Dollars/cwt Dollars/cwt. Steers Hogs Cents/lb Cents/lb. Broilers Turkey Sep 12, 2018
5 Mountains of Meat M-S-03A 10/01/17 Data Source: USDA/NASS, Livestock Marketing Information Center M-C-01 09/03/17
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7 -3.7 %
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13 Mil. Head 140 TOTAL CATTLE INVENTORY BY CYCLE U.S., January Data Source: USDA NASS Livestock Marketing Information Center C-N-40 01/31/18
14 US Total 1044 CHANGE IN BEEF COWS 2017 TO 2018 (1000 Head) Livestock Marketing Information Center Data Source: USDA-NASS US Total /01/18
15 How much expansion is needed? Cow Inventory and Beef Production Million Head Billion Pounds Cow Inventory Beef Production Source: USDA compiled by LMIC
16 Average Net Return to Labor and Management Per Beef Cow N.D. Farm Business Mgmt., Excluding Red River Valley Average Projected High 20% Low 20%
17 150 SLAUGHTER STEER PRICES 5 Market Weighted Average, Weekly JAN APR JUL OCT Fut 2019 Fut
18 USDA AMS, Compiled & Analysis by LMIC
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20 U.S. Ranking in World Production Exports Beef 1 1,4 Pork 2 1 Chicken 1 2 Turkey 1 1 Eggs 2 2
21 Major U.S. Meat Export Customers BEEF PORK CHICKEN Japan Mexico Mexico Korea Japan Canada Mexico Canada Cuba Canada China Hong Kong Hong Kong Korea Taiwan China? Australia China Ø
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24 Data Source: USDA AMS & USDA NASS Livestock Marketing Information Center
25 Other Livestock Data Source: USDA AMS; Livestock Marketing Information Center
26 MED. FRAME #1 STEER CALF PRICES Pounds, N.D., Weekly JAN APR JUL OCT Ave
27 Data Source: USDA NASS Livestock Marketing Information Center
28 Data Source: USDA-ERS & USDA-FAS - Livestock Marketing Information Center
29 MED. & LRG. #1 FEEDER STEER PRICES Pounds, N.D., Weekly JAN APR JUL OCT 2018 Futures 2019 Futures Ave
30 SF_LS766 Sioux Falls, SD Thu Sep 13, 2018 USDA-ND Dept of Ag Market News Stockmans Livestock Exchange - Dickinson, ND Feeder Cattle Weighted Average Report for 09/13/2018 Receipts: 1499 Two Weeks Ago: 1555 Year Ago: 2468 Compared to two weeks ago. Feeder steers weighing lbs traded 7.00 higher; lbs traded higher. Feeder heifers weighing lbs and lbs traded 3.00 higher; lbs and lbs traded 3.00 lower Good demand for this yearling offering featuring a handful of loads and many packages. Quality varied, but mostly average to attractive. Flesh light to moderate as the majority of the offering is coming off grass. An active market with good buyer attendance. Steers made up 61 percent of the feeder cattle, heifers 39 percent, 100 percent over 600 lbs. next sale is September 27, Feeder Steers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price
31 SF_LS766 Sioux Falls, SD Thu Sep 13, 2018 USDA-ND Dept of Ag Market News Stockmans Livestock Exchange - Dickinson, ND Feeder Cattle Weighted Average Report for 09/13/2018 Receipts: 1499 Two Weeks Ago: 1555 Year Ago: 2468 Compared to two weeks ago. Feeder steers weighing lbs traded 7.00 higher; lbs traded higher. Feeder heifers weighing lbs and lbs traded 3.00 higher; lbs and lbs traded 3.00 lower Good demand for this yearling offering featuring a handful of loads and many packages. Quality varied, but mostly average to attractive. Flesh light to moderate as the majority of the offering is coming off grass. An active market with good buyer attendance. Steers made up 61 percent of the feeder cattle, heifers 39 percent, 100 percent over 600 lbs. next sale is September 27, Feeder Heifers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Yearlings
32 Premiums likely (but not consistent) for: Verified shots (ND VIP) Natural (no antibiotics or implants) Source/age verified (China) Weaned Bovine Viral Diarrhea persistently infected (BVD-PI) tested negative Beef Quality Assurance (BQA) Replacement quality heifers * Check with your market before selling
33 SF_LS796 Sioux Falls, SD Fri Apr 27, 2018 USDA-ND Dept of Ag Market News North Dakota Weekly Auction Summary - For the week ending Apr 28, 2018 Receipts: 8,841 Last Week 3,399 Last Year 3,870 Feeder Heifers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Fancy Replacement Replacement Replacement Replacement Replacement
34 $ Per Cwt. 90 SLAUGHTER COW PRICES 85 90% Lean, Weekly JAN APR JUL OCT USDA AMS, Compiled & Analysis by LMIC
35 Data Source: USDA AMS Livestock Marketing Information Center
36 Price Risk Management Tools Cash forward contract Video and internet auctions CME futures CME options Livestock Risk Protection (LRP) Livestock Gross Margin (LGM) Which one or combination fits your marketing plan?
37 Risk Management? OCT FDR CAT
38 Fall Steer Calf LRP Results July 15 to Nov 15 (17 wk) Year Coverage Price Premium Actual Price LRP Payment LRP Profit
39 SF_LS764 Sioux Falls, SD Thu Nov 16, 2017 USDA-ND Dept of Ag Market News Napoleon Livestock Auction Inc.-Napoleon, ND Feeder Cattle Weighted Average Report for 11/16/2017 Receipts: 5297 Last Week: 6255 Year Ago: 5298 Feeder Steers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Fancy Calves Calves Calves Calves Calves Calves
40 SF_LS766 Sioux Falls, SD Thu Nov 17, 2016 USDA-ND Dept of Ag Market News Stockmans Livestock Exchange Feeder Cattle Weighted Average Report for 11/17/2016 Receipts: 4879 Last Week: 4922 Year Ago: 3841 Feeder Steers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Calves Calves Calves Calves
41 SF_LS766 Sioux Falls, SD Thu Nov 12, 2015 USDA-ND Dept of Ag Market News Stockmans Livestock Exchange Feeder Cattle Weighted Average Report for 11/12/2015 Receipts: 4101 Last Week: 4762 Year Ago: 4553 Feeder Steers Medium and Large 1 Head Wt Range Avg Wt Price Range Avg Price Calves Calves Calves
42 2018: Corn Prices and Trade Issues? Questions!