Fed cattle prices fall as heifer slaughter surges and China export concerns grow

Fed cattle on the cash-negotiated market traded $204 per hundredweight in the South last week, $4 lower than the week prior. In the North, cattle traded $208 per hundredweight, down $2 to $5. Dressed trade was $7 per hundredweight lower at $335 in the North.

The estimated slaughter for the week was 564,000 head, 27,000 fewer than the previous week and 34,000 fewer than the same time last year.

Official slaughter data released Thursday for the week ending March 29 showed dressed steer weights 6 pounds lower from the week prior and 21 pounds heavier than a year ago. Dressed heifer weights were 6 pounds heavier than the week prior at 876 pounds and 28 pounds heavier than a year ago. The weekly heifer slaughter of 223,800 head was the largest since 2004 and made up 44.5% of the weekly fed slaughter, the highest since 2002. Seasonally, heifer slaughter peaks in March before decreasing throughout the summer and then peaking again in late fall. However, the size of the leap is much higher than can be explained by seasonal factors. The last weeks of March featured the highest cash fed cattle prices on record -- likely a contributing factor. Heifer retention continues to be slow overall, also suggested by the sizeable heifer slaughter.

Average weekly boxed beef prices reversed for the first time in 5 weeks, with Choice losing $2.05 per hundredweight to $336.79 and Select losing $1.01 to $318.18. The chuck and the round were the drag on prices last week.