New Holland, PA Sat Jan 02, 2015 USDA- Ag Market News
Lancaster Weekly Cattle Summary for week ending January 02, 2015
This Week: 2633 2293
Last Week: 1024 836
Last Year: 2378 2103
This week in Lancaster County, all classes of slaughter cattle traded
steady to weak prior to the New Year Holiday. Supplies were heavy and buyers
showed limited interest due to most major slaughter facilities being closed
for the Holiday. As we transitioned into the New Year, buyer interested
picked up, aware that depleted inventories need to be replenished following
holiday beef purchases and two weeks of reduced slaughter. This seasonal
occurrence was no different this year as consumers didn't seem to fret too
much over higher beef prices. Trade out of the major feedlots in the Midwest
moved cattle at prices ranging from 165.00-169.00 this week, 3.00-4.00 higher
than the previous week and well above what packers were bidding early in the
week. Feedlot inventories continue to increase on account of slow marketing
and an expanding cattle herd. This trend is expected to slowly progress
higher throughout year 2015 and beyond unless weather patterns nullify
efforts. The industry expects to see a significant increase in available
slaughter cattle supplies starting this spring into summer, which will likely
put pressure on the fat cattle market as reflected by the CME futures.
Currently there is an 8.00/cwt spread between the April and June futures
price and this spread is expanded further going into the August futures.
Demand and prudent marketing will be a much larger factor for cattle feeders
in 2015 with the leverage of tight supplies fading. Cull cow marketing's are
expected to remain light if weather permits further herd expansion, although
this relates mostly to beef-type cattle. Falling milk prices in the last
couple months of 2014 after what was easily considered a stellar year for
dairy producers may promote more culling this winter of marginal producing
milk cows. It was likely that we didn't see as much culling in 2014 due to
large incomes from milk checks and Holstein calves not to mention plenty of
feed to carry cows into the new tax year. Feeder cattle prices have soften
after peaking in September on renewed concerns of where the fat cattle market
will end up in 2015. Corn remains cheap, but high priced feeder cattle
purchased late summer into fall need 170.00/cwt or more finished to breakeven
considering a conventional feed lot scenario. Although market hedges were
ridiculed this past year for 2014 closeouts, this year may prove otherwise,
considering no one has that crystal ball. 2014 pushed markets to record highs
never thought attainable at the start of the year, but commodity prices are
not linear in nature and the dynamic forces of supply and demand will
continue to develop cyclical market patterns over time. All slaughter and
feeder cattle are purchased per cwt with exception of dairy cattle purchased
on a per head basis.
For detailed cattle quotations refer to web addresses:
http://www.ams.usda.gov/mnreports/LN_LS140.txt (New Holland Monday)
http://www.ams.usda.gov/mnreports/LN_LS142.txt (New Holland Thursday)
http://www.ams.usda.gov/mnreports/LN_LS146.txt (Vintage Monday)
http://www.ams.usda.gov/mnreports/LN_LS141.txt (Vintage Tuesday)
(EARLY WEEK AUCTIONS)
Slaughter Steers: High Choice and Prime 3-4 1300-1600 lbs 165.50-169.00.
Choice 2-3 1250-1650 lbs 163.00-166.00.
Holstein Steers: High Choice and Prime 3-4 1400-1650 lbs 146.50-153.00.
Choice 2-3 1300-1700 lbs 141.00-145.50.
Slaughter Heifers: High Choice and Prime 3-4 1300-1500 lbs 164.50-168.50.
Percent Lean Avg. Dressing High Dressing Low Dressing
Premium White 65-75 104.00-108.50 112.00-113.00 ------------
Breakers 75-80 98.00-105.00 105.00-111.00 92.00-98.00
Boners 80-85 97.00-103.00 104.00-109.50 86.00-96.00
Lean 85-90 94.00-100.00 101.00-107.00 80.00-93.00
Slaughter Bulls: Yield Grade 1 925-2040 lbs avg dress 140.00-150.00, high
dress 150.00-158.00, very high dress 172.00-178.00, low dress 127.50-139.00.
(LATE WEEK AUCTIONS)
Slaughter Steers: High Choice and Prime 3-4 1350-1650 lbs 169.50-
172.50. Choice 2-3 1250-1650 lbs 166.50-170.50. Select 2-3 1200-1500 lbs
Slaughter Holsteins: High Choice and Prime 3-4 few 1350-1650 lbs
152.00-157.00. Choice 2-3 1300-1700 lbs 140.00-150.00. Select 2-3 1300-
1700 lbs 130.00-139.00.
Slaughter Heifers: Choice 2-3 1100-1400 lbs 164.50-167.50, low
dressing 158.00-161.00. Select 2-3 1100-1350 lbs 156.00-157.50.
Percent Lean Avg. Dressing High Dressing Low Dressing
Premium White 65-75 ------------- ------------- ------------
Breakers 75-80 103.00-108.00 109.00-113.50 94.00-102.50
Boners 80-85 104.00-109.50 109.50-112.50 94.00-102.00
Lean 88-90 99.00-105.00 105.50-113.50 85.00-97.50
Slaughter Bulls: Yield Grade 1 1010-1650 lbs 140.00-144.00, low dress
Calf Summary: This week in Lancaster County, the Holstein Bull Calf supply
was much heavier as deferred receipts from last week's Holiday closures moved
through the market this week. Prices were weaker on account of a near
burdensome supply, but demand remained very good. Heifers traded firm with
moderate demand. The most recent reported Composite Veal Carcass Values for
the Northeast United States was quoted from 425.00-440.00/cwt, with a
weighted average value of 430.05/cwt (Hide-off). All prices per cwt.
For detailed veal market information refer to the link below:
http://www.ams.usda.gov/mnreports/lswveal.pdf (National Veal Summary)
Monday- Holstein Bull Calves: Number 1 75-120 lbs 400.00-475.00. Number 2
75-120 lbs 325.00-400.00. Number 3 70-120 lbs 225.00-325.00. Utility 75-130
Tuesday- Graded Holstein Bull Calves: Number 1 88-112 lbs 330.00-365.00;
122 lbs 307.00. Number 2 84-95 lbs 362.00-385.00; 102-116 lbs 332.00-367.00.
Number 3 74 lbs 155.00; 83 lbs 370.00-375.00; 94-109 lbs 325.00-345.00.
Utility 63 lbs 25.00; 72-105 lbs 75.00-105.00. Graded Holstein Heifers:
Number 1 93-114 lbs 355.00-420.00; 83 lbs 300.00. Number 2 83-101 lbs
305.00-380.00; 73 lbs 155.00. Non tubing/utility 63-105 lbs 20.00-70.00.
Thursday- Graded Holstein Bull Calves: Number 1 90-128 lbs 420.00-465.00.
Number 2 106-128 lbs 405.00-422.00; 88-100 lbs 435.00-467.00; 80-86 lbs
500.00. Number 3 80-130 lbs 380.00-435.00; 80-88 lbs 300.00. Utility 80-110
lbs 165.00-200.00; 60-78 lbs 40.00. Holstein Heifers: Number 1 85-110 lbs
320.00-400.00. Number 2 80-110 lbs 200.00-300.00. Utility/Non tubing 70-100
Dairy Report: (Receipts: 526)
Compared to last week, fresh cows and bred heifers sold significantly
lower this week. Demand has been light in the face falling milk prices. ady.
Demand was moderate. Trend not established for heifers. Wednesday's supply
included 219 fresh milking cows, 18 springing cows, 40 short bred cows, 79
springing heifers, 82 short bred heifers, 81 open heifers, and 09 bulls. One
hundred percent of reported supply Holsteins unless otherwise noted. All
sales sold on a per head basis.
Short Bred Cows: (1-3 months)
Springing Heifers: (7-9 months):
Price and grade information is reported by QSA-USDA Market News Service.
While market reports reflect the majority of Livestock sold at each sale,
there are instances where animals do not fit reporting categories and are not
included in this report.
Source: USDA Ag Market News, New Holland-Lancaster County, PA
Levi Geyer, OIC / Cell 717-406-7350
John Stacy, Market Reporter / Office 717-354-2391