In the latest market news, the cattle market outlook for 2024 shows a 6 percent decrease in national feeder and stocker receipts compared to 2023. This decline in numbers has resulted in some interesting trends in pricing opportunities at the start of the year.
According to data from the USDA-AMS National Feeder and Stocker Cattle Summary, the number of feeder and stocker cattle sold in the first 19 weeks of 2024 was notably lower than the same period in 2023. Approximately 330 thousand fewer cattle have been sold at auction in 2024 compared to the previous year.
Compared to the 5-year average, receipts in 2024 have seen a 3 percent decrease year to date, indicating a shift in market dynamics. While the dataset may not capture all transactions, it provides valuable insights into the current state of the market.
Producers seem to have taken advantage of favorable pricing in February, leading to higher receipts. However, since late March, receipts have been below previous year levels and the five-year average. As we approach the summer months, a seasonal decline in receipts is expected before a potential increase in the fall.
The report also highlights the mix of steers and heifers, with heifer sales remaining consistent between 2023 and 2024. Additionally, cattle weights have shown a slight increase, with a higher percentage of cattle weighing above 600 pounds in 2024 compared to the previous year.
Insights from auction receipt totals this fall will be crucial in understanding changes in the 2024 calf crop. While the USDA-NASS has discontinued the mid-year report for budget reasons, the 2024 calf crop estimates will now be released in the January 2025 report.
Feeder cattle prices have shown mixed trends depending on location, with the Choice boxed beef cutout value experiencing a significant increase last week. After a decline in April, the Choice cutout value has risen over the past two weeks, indicating a potential shift in market conditions.
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