MARKETING...
In The Cattle Markets
Summer grazing potential
A spring much warmer than normal in the Northern Plains and in other areas as well has grass greening up earlier than normal. Given the volatile prices that have been occurring, what is the profit potential for grazing calves this summer?Calf and feeder-cattle prices are at record-high levels, but have been volatile and in a general downtrend for the last several weeks. The CME Feeder Cattle Price Index, which is a good barometer for 650-850-pound (lb.) feeder-steer prices in the United States, has declined about $8 per hundredweight (cwt.) since peaking at $157.45 on Feb. 14. Likewise, September CME feeder-cattle futures were trading at $163-$164 per cwt. in early March, and declined to $151-$152 in early April. During the second week of April, September futures rallied to the $156-$157 range. Read more.
Education Needed About LFTB
Lean, finely textured beef 'is meat' and a healthy form of protein,
according to a Texas A&M University expert.
"The simplest way to describe this is that it is meat; it's beef," he said. "The protein content is similar to what is [found] in a steak. This product is no different than meat; that's the reason USDA calls it meat."
Cross said much misinformation has been reported and discussed in various media. That's why it is important that the facts be told about the production of LFTB, which comes from traditional carcass-harvesting methods, he said. Read more.
Cattle Price Pullback Was Likely
Even Before LFTB Discussion
Demand will be market driver over next few months.
Given recent historic highs in cattle prices, it shouldn't have been surprising to see values dip somewhat during March, but consumer response to news of lean, finely textured beef (LFTB) in the nation's meat supply hit cattle and beef values harder than many could have anticipated, according to a Kansas State University (K-State) agricultural economist.
"I think we were due in early March for a pause. The fact that we've had a pullback from historic highs is not really a surprise," said Glynn Tonsor, livestock marketing specialist with K-State Research and Extension.
He noted that April fed-cattle futures on the Chicago Mercantile Exchange (CME) closed at $118 per hundredweight (cwt.) April 6, down about $12 from a month earlier. Similarly, April feeder cattle futures closed at $148, down from $161 in early March. Cash cattle prices softened similarly, with Kansas fed-cattle prices off about $3 at $123-$124 April 6. Read more.
CAB Mythbusters
What they thought they knew that just ain't true.
Sometimes I have a hard time explaining my job. First off, I'm an agricultural journalist by training, which is a foreign term to many. My husband is an agronomist, which generates many more blank stares. People usually have heard of a journalist, just not of the ag variety.
Then I tell them that I write about everything to do with cows: the cattle industry and topics like weaning, carcass grading and feedlot performance. That leaves many dazed and confused, but, even among the cattle community, I often have one more hurdle. It can be really hard to explain that I work for a nonprofit branded beef company.
These discussions happen almost any time I meet somebody new and for those who are really trying to understand what CAB is and does (rather than nodding politely), it usually leads to this little misunderstanding. Read more.
The Source
I want to buy tags.
This time of the year, our office receives quite a few calls from folks wanting to buy tags for their new calves. It's quite a deal. Producers can purchase calf tags through our online Tag Store (www.customcattletags.com) for only 99¢.
What many do not realize is that once those calves are tagged, they can easily be enrolled in either the AngusSource® or the Gateway program. For an additional $50.01 investment, you can secure a place at the top of the market for your calves.
A recent producer commented, "I don't know why everyone doesn't enroll. I keep calving records, and I get to talk about my cows to someone who wants to listen." Read more.
Beef Consumers and Flavor
When it comes to food, the alternatives are endless: spicy or bland; Mexican, Italian, Asian or Southern-style comfort dishes. But when it comes to beef, almost everyone agrees on a few features.
"Consumers tell us that higher fat levels are more desirable; they like it better," says Mark Miller, meat scientist at Texas Tech University. "We've found that marbling level has a really big impact on the consumer's desire for beef."
He referenced a thesis by Travis O'Quinn, "Consumer Acceptance of Beef Strips," comparing strip loins from USDA Prime to Select, where overall liking declined from 95.8% to 79%. That linear downtrend mirrored the flavor ratings, which showed 97.5% of the Prime steaks were acceptable. Those scores dropped with each successive grade break: 94.2% for high-Choice, 92.4% for low-Choice and 85.8% for Select. Read more.
U.S. Cattle on Feed Up 2%
The National Agricultural Statistics Service (NASS), Agricultural Statistics Board, USDA released its April 20 Cattle on Feed Report.
Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.5 million head on April 1, 2012. The inventory was 2% above April 1, 2011. The inventory included 7.17 million steers and steer calves, up 1% from the previous year. This group accounted for 62% of the total inventory. Heifers and heifer calves accounted for 4.25 million head, up 4% from 2011.
Placements in feedlots during March totaled 1.79 million, 6% below 2011. Net placements were 1.72 million head. During March, placements of cattle and calves
- weighing less than 600 pounds (lb.) were 390,000;
- 600-699 lb. were 300,000;
- 700-799 lb. were 500,000; and
- 800 lb. and greater were 602,000
| Table 1: No. of cattle on feed, placements, marketings and other disappearance for 1,000+ capacity feedlots in the United States on April 1, 2011 and 2012 |
||||
| Number | % of | |||
| 2011 | 2012 | previous year | ||
| ---- 1,000 head ---- | % | |||
On feed March 1 |
11,386 | 11,677 | 103 | |
Placed on feed during March |
1,914 | 1,792 | 94 | |
| Fed cattle marketed in March | 1,990 | 1,918 | 96 | |
Other disappearance during March |
53 | 69 | 130 | |
On feed April 1 |
11,257 | 11,482 | 102 | |
Angus Calendar
To view the Angus Calendar, a complete list of Angus sales, click here.