Cattle Outlook: No Sign Consumers Reacting Negatively To BSE
There are no signs that U.S. consumers have reacted negatively to the second confirmed case of BSE in the United States. The futures prices for live cattle at the close on Thursday, was higher by $0.25 to 1.40 per cwt than the close before the announcement of the second case of BSE was confirmed.
Certainly the probabilities are extremely low that a consumer will be impacted negatively health wise by eating U.S. beef. It is rewarding to see U.S. consumers use science rather than emotions as they react to the BSE problem in the U.S.
Cash prices also support no negative reaction to the announcement of the second confirmed case of BSE in the U.S. Cash fed cattle prices are within $2.00 per cwt of the price before the announcement. Wholesale beef prices are also very close to the same level this Friday as the preannouncement price.
Oklahoma City did not have a sale this week because of the July 4 holiday. However, nationally feeder steers sold steady to weak with some calves $1-4 per cwt lower a few places in the southeast.
The wholesale price of beef this Friday showed choice beef at $135.04 per cwt down $0.42 per cwt and select beef down $1.02 per cwt at $131.59 per cwt.
The differential between choice and select beef this Friday was down to $3.45 per cwt as feedlots have held onto cattle longer getting them heavier with a higher percentage choice. Weights are running around 15 lbs heavier than 12 months earlier. The differential between choice and select beef 2 months ago was almost $16 per cwt.
Cow slaughter for the year through the week ending June 25 was down 6.4 percent. Beef cow slaughter for this period was down 7.1 percent and dairy cow slaughter was down 6 percent. For the four weeks ending June 25 cow slaughter was down over 9 percent from 12 months earlier.
We expect the Cattle inventory and cow herd will both show growth from 2004 when we get the July 1 inventory on July 22.
Cash fed cattle price this week through Thursday for the 5 market area at $80.95 per cwt was up $0.69 from a week earlier. Carcass based fed cattle price this week through Thursday was up $1.00 per cwt at $129.00 per cwt.
Slaughter this week under Federal Inspection was estimated at 548 thousand head --- up 2.8 percent from a year earlier.
There are no signs that U.S. consumers have reacted negatively to the second confirmed case of BSE in the United States. The futures prices for live cattle at the close on Thursday, was higher by $0.25 to 1.40 per cwt than the close before the announcement of the second case of BSE was confirmed.
Certainly the probabilities are extremely low that a consumer will be impacted negatively health wise by eating U.S. beef. It is rewarding to see U.S. consumers use science rather than emotions as they react to the BSE problem in the U.S.
Cash prices also support no negative reaction to the announcement of the second confirmed case of BSE in the U.S. Cash fed cattle prices are within $2.00 per cwt of the price before the announcement. Wholesale beef prices are also very close to the same level this Friday as the preannouncement price.
Oklahoma City did not have a sale this week because of the July 4 holiday. However, nationally feeder steers sold steady to weak with some calves $1-4 per cwt lower a few places in the southeast.
The wholesale price of beef this Friday showed choice beef at $135.04 per cwt down $0.42 per cwt and select beef down $1.02 per cwt at $131.59 per cwt.
The differential between choice and select beef this Friday was down to $3.45 per cwt as feedlots have held onto cattle longer getting them heavier with a higher percentage choice. Weights are running around 15 lbs heavier than 12 months earlier. The differential between choice and select beef 2 months ago was almost $16 per cwt.
Cow slaughter for the year through the week ending June 25 was down 6.4 percent. Beef cow slaughter for this period was down 7.1 percent and dairy cow slaughter was down 6 percent. For the four weeks ending June 25 cow slaughter was down over 9 percent from 12 months earlier.
We expect the Cattle inventory and cow herd will both show growth from 2004 when we get the July 1 inventory on July 22.
Cash fed cattle price this week through Thursday for the 5 market area at $80.95 per cwt was up $0.69 from a week earlier. Carcass based fed cattle price this week through Thursday was up $1.00 per cwt at $129.00 per cwt.
Slaughter this week under Federal Inspection was estimated at 548 thousand head --- up 2.8 percent from a year earlier.