Cattle on Feed Up 1 Percent, Montana Markets Week Ending June 20

Cattle on Feed Up 1 Percent, Montana Markets Week Ending June 20

Cattle on Feed – June 19

Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 10.6 million head on June 1, 2015. The inventory was 1 percent above June 1, 2014. Placements in feedlots during May totaled 1.71 million, 10 percent below 2014. Marketings of fed cattle during May totaled 1.71 million, 8 percent below 2014. May marketings are the lowest since the series began in 1996. Other disappearance totaled 82,000 during May, 19 percent below 2014.

Read more from the USDA’s June 20 Cattle on Feed report.

Montana Weekly Auction Summary for Week Ending June 20, 2015

Market: Billings Livestock Commission, Public Auction Yards

Receipts: 2,572; Last Week 2,924; Last Year NA

Compared to last week: Compared to last week: Feeder cattle were all too lightly tested for an accurate market trend. Feeder cattle were of mostly average quality, with many plain made offerings. Demand for feeder cattle was good to very good on all offerings. Limited feeder availability has many buyers fighting over offerings causing limited sales to inch higher.

CME futures contract prices struggled throughout the week. August contracts closed down 1.975 at 221.925 and September closed down 1.675 to close at 220.275 as of Thursday night’s settlement. This didn’t slow down buyers across the country as the 7 day running average CME feeder cattle index closed at 225.73 as of Wednesday’s sales (the latest available settlement), which is a premium to the August CME contract.

Weigh-up cows sold with moderate demand this week on moderate offerings. Quality this week was mostly average with a few small strings of attractive cows. Slaughter cows were too lightly tested again this week to develop an accurate market trend, however unevenly steady undertones abounded throughout the week. Order buyers continue to sustain the market this week as demand for feeding, breeding, and grass cows helped hold prices fully steady. Packer buyers bought cows on increased demand from last week, however slaughter cows continue to sell with light demand.

Buyers searching for breeding stock purchased 2 year olds to young age cows on light to moderate demand this week. Heiferettes and young age cows sold steady to lower with many buyers taking a step back and filling orders on an as need basis. Many buyers picked through offerings and bid on only higher quality cattle causing wide price spreads within age groups. Cow/calf pairs sold on very good demand this week, with Billings Livestock offering around 500 head of pairs. Quality was mostly attractive with many ranchers in the stands actively bidding on offerings.

Read more from USDA’s June 19 Montana Weekly Auction Summary.

National Feeder & Stocker Cattle Summary – Week Ending June 19, 2015

Receipts This Week: 176,700 Total – 118,900 (Auctions); 54,800 (Direct); 3,000 (Video/Internet)

Compared to last week: yearling feeder cattle sold steady to 3.00 higher with steer and heifer calves trading steady to instances 5.00 higher on a light test throughout the Midwest. Demand was good for all classes of feeder cattle, with the possible exception of fleshy/short weaned steer calves weighing between 600-700 lbs. Feeder cattle continue to hold up remarkably well despite these bearish fundamentals with many farmer/feeders in the market and no shortage of grass out in the country.

Boxed-beef values have strengthened this week with the 4th of July just around the corner this should have retailers looking to fill shelves with Father’s Day this weekend hopefully will be good test for beef demand. Will cut-out values hold up into the summer months of July and August is a concern as usually beef demand has a tendency to be lackluster during this time period? Packers continue to keep slaughter levels small to help stabilize cut-out values and increase their margins rather than dip into the red to bid higher on slaughter cattle.

Tropical Storm Bill is adding much unwanted heavy rains to already saturated fields from east Texas up through the Ohio River Valley.  Corn is likely looking at acres that will be lost or limited in production which has supported corn and soybean prices this week.  Monday’s progress report had corn 91 percent emerged and 73 percent rated good to excellent.  Soybeans roughly have around 11 million acres left to be panted with around 7 million of those acres in states that are very wet.

• Auction Receipts: 118,900; Last Week: 168,500; Last Year: 142,700
  • Montana 2,600. 74 pct over 600 lbs. 68 pct heifers.
  • Steers: Medium and Large 1 650-700 lbs (676) 256.80; pkg 835 lbs 220.00.
  • Heifers: Medium and Large 1 550-600 lbs (569) 256.53; 600-650 lbs (617) 246.51; half load 645 lbs 243.00; 700-750 lbs (740) 220.11; part load 870 lbs 197.00.

Read more from the USDA’s June 20 National Feeder & Stocker Cattle Summary.

Weekly Montana Hay Report – June 19, 2015

Compared to last week: First cutting is under way as many farmers are trying to dodge rain showers in order to get first cutting down. Rain showers fell throughout much of the week in central and southern Montana, giving added moisture to pasture and range, but providing a slight nuisance to farmers trying to put up hay. Hay supplies are nearly depleted for all very high quality alfalfa hay. However, there remains some middle of the road old crop hay that continues to move at steady money. Demand for Alfalfa hay continues to be light.

This week the US drought monitor increased the land area in abnormally dry and moderate drought status. Most of this land is in the northwest and southwest corners of the state, where the western drought has inched its way east. Light demand was seen for grass hay marketed within the state as steady prices move hay on an as need basis. Good demand was seen for hay to ship to other areas of the country, particularly drier regions, both east and west.

• Alfalfa:
  • Supreme: Small squares, 200.00
  • Good: Large squares, 120.00-130.00; Small squares, 138.00-150.00
  • Fair: Large squares, 90.00-130.00
• Grass:
  • Good: Large Rounds, 90.00-100.00; New crop contract, 110.00-120.00; Large Squares, 100.00
• Timothy Grass:
  • Premium: Small Squares, 240.00.
  • Good: Small Squares, 160.00-180.00.
• Straw:
  • Large Squares and Rounds, 35.00-40.00

Read more from the USDA’s June 20 Weekly Montana Hay Report.