farmdoc daily’s Post

In 2024 and 2025, the northern cattle herd is set to stabilise according to MLA Industry Projections. This is thanks to consistent wet seasons that support a large, productive breeding herd. This stability is accompanied by a promising increase in cattle exports to South-East Asia, presenting exciting opportunities for exporters. On the other hand, Southern Australia will see a decrease in its cattle herd due to strong international beef demand and higher turn-off rates from a mature herd. Overall, the outlook for northern cattle exports is bright, offering valuable growth potential for the industry. ImpexDocs is here to continue to support our cattle exporters as they optimise their processes. #Exporters #Trading #GlobalMarket

Cattle Market  Fed cattle prices continued to weaken last week with a $183.47 per hundredweight (cwt.) average, down from the prior week’s $185.87 per cwt. Live cattle futures prices on the Chicago Mercantile Exchange continued to act as the lead price indicator with the April contract as low as $180 per cwt. as of Monday morning this week. The April contract has slipped $7 per cwt. lower since March 26. Carcass cutout values in the weekly average trends were lower for both Choice and Select while the Certified Angus Beef ® cutout was quoted slightly higher on the week at $308.22 per cwt. Price spreads between the cutouts narrowed in the past two weeks in a seasonal pattern with weakness in rib demand consolidating prices from Certified Angus Beef ® ribs down through Select. One feature of the narrowing cutout price spreads has been the strong performance of total USDA Choice production, nearing a record-high percentage of total fed cattle carcass supplies. Moving through the end of April and into May, the price spreads tend to widen as carcass quality grade typically declines, coinciding with strong spring grilling demand. The caveat this year is that carcass weights are record-heavy for the period, potentially holding carcass marbling levels higher as fed cattle harvest continues at a slower pace. The higher quality grade trend could also keep Certified Angus Beef ® production higher than anticipated as a share of the total carcass mix. This will hold true if carcass weights begin to lighten seasonally, allowing more carcasses to fall within the ribeye area specification of 10-16 square inches for the brand.

In 2024 and 2025, the northern cattle herd is set to stabilise according to MLA Industry Projections. This is thanks to consistent wet seasons that support a large, productive breeding herd. This stability is accompanied by a promising increase in cattle exports to South-East Asia, presenting exciting opportunities for exporters. On the other hand, Southern Australia will see a decrease in its cattle herd due to strong international beef demand and higher turn-off rates from a mature herd. Overall, the outlook for northern cattle exports is bright, offering valuable growth potential for the industry. ImpexDocs is here to continue to support our cattle exporters as they optimise their processes. #Exporters #Trading #GlobalMarket

While consumer demand for beef is strong, heavy carcass weights are limiting cattle feeders' bargaining position. Our senior animal protein analyst, Dave Weaber, discusses these market dynamics in his Q4 2024 Beef Outlook. "Fed cattle carcass weights remain elevated at 25 pounds above a year earlier, on average, from the beginning of June to August. The extra 25 pounds of carcass weight per head equates to an additional 12.4 million pounds of beef produced on a weekly basis — the beef tonnage equivalent of slaughtering an extra 13,800 head of fed cattle per week." Learn what Dave's predicting for the cattle market for the rest of 2024: https://lnkd.in/epXHMvf9 #Beef #Agriculture

In 2024 and 2025, the northern cattle herd is set to stabilise according to MLA Industry Projections. This is thanks to consistent wet seasons that support a large, productive breeding herd. This stability is accompanied by a promising increase in cattle exports to South-East Asia, presenting exciting opportunities for exporters. On the other hand, Southern Australia will see a decrease in its cattle herd due to strong international beef demand and higher turn-off rates from a mature herd. Overall, the outlook for northern cattle exports is bright, offering valuable growth potential for the industry. ImpexDocs is here to continue to support our cattle exporters as they optimise their processes. #Exporters #Trading #GlobalMarket

📈 Understanding Cattle Pricing: Formula vs. Negotiated Cash 🐄 🤔 Let's dive into the relationship between formula pricing and negotiated cash prices in the fed cattle market. Understanding these pricing mechanisms can help producers make more informed decisions and better navigate the market. https://lnkd.in/gmyxenHN

Today, it is estimated that more than 60% of the dairy-origin cattle entering feedlots have been replaced by beef × dairy crossbred calves. These calves are coming at a time when the beef industry and supply chain need them as calf numbers are at an all-time low, while the demand for beef continues to grow. Based on market data averages from the Overland Stock Yard, Cattle Marketing Services, and Superior Livestock Auction, the average weekly price of steer calves in June was $124.84 higher than heifer calves. Looking at this trend further, the premium for steers in feeder cattle markets over a 3-month rolling average was over $110 per head on 500-pound calves. To read more about the value of steers and STgenetics Beef Add On™: https://lnkd.in/d9pQ6F67 and https://lnkd.in/d2wRQ6w4 #STgenetics #BeefAddOn #BeefOnDairy #ValueofSteers

Midweek cattle trade saw higher numbers, leaving many wondering about the surge in the market. On this week’s Cattle Call, Brad Kooima of Kooima Kooima Varilek dives into the factors behind the rise, including the boxed beef trade and last week’s lack of deferred cattle purchases that helped set a positive tone. Strong charts and fund buying have also contributed to the market’s momentum, and Kooima breaks down the macro charts that illustrate these trends, offering insights into what's driving this week’s stronger trade.

Joe’s industry article of the week: Cattle Inventory Shrinks to Lowest in 73 Years Learn about the latest developments in the beef industry as the cattle inventory reaches its lowest point in 73 years, raising concerns about potential price hikes. #PeddlersSon #CattleIndustry #RestaurantIndustry

Two key points from MLA’s latest cattle and sheep projections are: - A slight decline in the cattle herd and increased slaughter rates 🐄📈 - Sheep flock decreased but strong sheepmeat production forecasted for 2024 🐑🥩 For a more comprehensive outlook of the cattle and sheep sectors, see the link below 👇 https://bit.ly/48L3ixs