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Retail Beef Prices Set New Records In November
The December Cattle on Feed report said the number of cattle in large feedlots was down 5.5 percent at the start of the month. November placements were down 3.1 percent and November marketings were down 4.5 percent, largely due to one fewer slaughter day. The report was slightly bullish.
The House-Senate conference committee appears to be making progress on having the new farm bill ready for a vote in early January.
Retail beef prices set new record highs in November. The average retail price of a pound of choice beef was $5.409 in November, up 5.4 cents from the old record set the month before. The average price of all fresh beef in grocery stores during November was $5.014 per pound, up 4.3 cents from the record set the month before. In November, the average retail price of a pound of ground beef was $3.477. That was 2.7 cents higher than a pound of boneless chicken breast.
The weekly average fed cattle price dropped below $130/cwt for the first time since week ending October 18. Through Thursday, the 5-area average price for slaughter steers sold on a live weight basis was $129.46/cwt, down $1.54 from the week before, but up $3.29 from the same week last year. Steers sold on a dressed basis averaged $206.91/cwt this week, $6.91 higher than a year ago.
This morning, the boxed beef cutout value for choice carcasses was $196.06/cwt, down $1.89 from the previous Friday, but up $2.84 from a year ago. The select carcass cutout is $187.17/cwt, up 4 cents for the week and up $9.95 from the same day last year.
This week’s cattle slaughter totaled 613,000 head, up 0.8 percent from last week, but down 3.0 percent from the corresponding week last year. Through November, steer slaughter was down 1.3 percent, heifer slaughter down 2.0 percent and cow slaughter was down 2.4 percent compared to the first 11 months of 2012.
The average steer dressed weight for the week ending on December 7 was 877 pounds, up 2 pounds from the week before but down 1 pound from a year earlier.
Oklahoma City feeder cattle auction prices were mixed this week. Prices for medium and large frame #1 steers by weight were: 400-450# $211-$235, 450-500# $198-$219, 500-550# $191-$212, 550-600# $173-$201, 600-650# $155-$189.50, 650-700# $155-$179, 700-750# $157-$167.50, 750-800# $153-$166, 800-900# $146-$162, and 900-950# $146.50-$152.75/cwt.
The December live cattle futures contract closed at $132.52/cwt today, up 65 cents from last week’s close. February fed cattle settled at $133.90, up $1.05 for the week. April settled at $134.50/cwt, up 70 cents.
The January feeder cattle futures contract ended the week at $166.97/cwt, down 10 cents for the week. March feeders closed at $166.92/cwt, which was 37 cents higher than the previous Friday.∆
DR. RON PLAIN AND DR. SCOTT BROWN: Agricultural Economists, University of Missouri
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