Feeder cattle prices 201811/15/2023 ![]() Packers slaughter the cattle and sell the meat in carcass boxed form. After attaining a desirable weight, feeder cattle become finished cattle that are sold to a packer (finished cattle are also called fattened cattle, fat cattle, fed cattle, or, when contrasted with carcasses, live cattle). Both types are often produced in a cow-calf operation. Feeder calves are less than 1 year old feeder yearlings are between 1 and 2 years old. Backgrounding occurs at backgrounding operations, and fattening occurs at a feedlot. The term often implicitly reflects an intent to sell to other owners for fattening (finishing). ![]() They may be steers (castrated males) or heifers (females who have not dropped a calf). This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Young cattle soon to be sent to fattening, especially those intended for sale before finishing Fat cattle and alfalfa in the Pecos Valley, New Mexico (probably early 20th century) "Prize fat cattle" (probably late 19th century) The Grand Champion steer at the 13th annual Fat Cattle Sale and Show in Quincy, Florida, 1959 Foxhole Martha 2005 Royal Cornwall Female Breed Championįeeder cattle, in some countries or regions called store cattle, are young cattle mature enough either to undergo backgrounding or to be fattened in preparation for slaughter. Spam protection has stopped this request. Posted by Smith at 5:05am January 4, 2023 Whether you consider using futures, options, or USDA’s Livestock Risk Protection (LRP), there are tools available for producers of every size to offload some price risk if you wish to do so. The current optimism in markets will very likely allow for stronger pricing opportunities than in past years. The start of a new year is a good time to consider price risk management opportunities ( click here to read Kenny’s February 2022 newsletter about risk management considerations). The 2023 live cattle contracts are near $160. All of the fall 2023 feeder cattle contracts are above $200 per CWT and the spring contracts are near $190 (see chart above). Looking ahead, CME futures prices for 2023 contracts are trading at levels not seen since 2015. It will be interesting to see whether the one of the coming months tops the November total or if we have already reached the seasonal peak. Feedlot supplies typically peak seasonally during the winter, but December was a decline from November in 2022 (see chart above). Placements during November were down 2 percent year over year while marketings were up 1 percent. This was the third consecutive month with a lower than year-ago total. The report showed cattle on feed at 11.7 million head which was nearly 3 percent lower than December 1, 2021. The December 1 Cattle on Feed estimates were released just before Christmas. High cattle prices could send signals to expand, but producers will still need adequate pasture or economical feedstuffs to do so. Many areas have received rain in recent weeks which helped improve the drought monitor some. Drought conditions worsened near the end of 2022 and how long dry conditions persist into 2023 will be a key driver for cattle markets. Higher grain prices continue to be a challenge for producers. Fed cattle prices have improved by $50 per cwt since December 2020 when markets were still wrestling with the worst of the pandemic impacts – approximately a 50 percent increase. If we compare to two years ago, the differences are stark. Fed cattle prices are up nearly $20 per CWT above year-ago levels. Such is the cyclical nature of the cattle industry – production decisions have long impacts.Ĭattle markets improved throughout 2022. Although it is only January, the stage is already set for tighter cattle and beef production in 2023. The resulting impact for 2023 is these cows and heifers will not be producing calves this year. Around 12 percent more beef cows and about 5 percent more heifers were processed in 2022 than in 2021. ![]() The rate of beef cows and heifers processed was particularly noteworthy. James reviewed last year in the last newsletter of 2022 (available here). But the overall projection is for stronger cattle market prices.Ģ022 was a unique year for cattle production and markets. There will be challenges ahead, especially with navigating higher input costs and questions about beef demand in 2023. We are entering 2023 with the expectation of a smaller calf crop that is more similar in size to 2014 than to recent years. ![]() Cattle supplies tightened in 2022 while beef demand remained relatively steady. The optimism surrounding cattle markets at the start of this year is the highest since 2014-2015. – Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State University
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