Price adjustments can be fine-tuned using the monthly average price slides. It is also apparent that price slides for both steers and heifers vary across months. It is evident from Table 1 that the percent price slide for heifers is generally lower compared to steers for the lighter weights but is roughly equal to the steer price slide for heavy feeders. or $12.06/cwt if the market price was $180/cwt. Thus, the 575 pound steer would have a price slide of $8.04/cwt. However, while the percent price slide is constant, the absolute price adjustment depends on price level. In this example, the price slide is close to the traditional 10 cent slide. If the steer actually weighs 30 pounds more or 605 pounds, the price would be adjusted down by $3.02/cwt ($10.05 x 0.3 cwt.) to $146.98 ($150-$3.02). The annual average price slide is 6.7 percent which results in a price adjustment of $10.05/cwt. As an example of how to use these price slides, suppose the base price of 575 pound steers is $150/cwt. It is apparent that price slides are not only different for different weights but also vary for steers and heifers and at different times of the year. Table 1 shows annual average and monthly average price slides for selected weights of steers and heifers. Price slides depend on the price level and thus are more accurately stated as a percent of the base price. The price volatility of recent years has shown that these rules of thumb using absolute levels are inadequate to accurately capture price adjustments over a wide range of price levels. a 10 cent slide on calves or a 6 cent slide on yearlings. Prices slides are often stated in terms of traditional rules of thumb, e.g. Price slides are also useful for producers to evaluate price changes for the weight gain of calves in a preconditioning or short backgrounding program or perhaps the additional weight from creep feeding calves. Price slides have a number of uses, the most common of which is adjusting the price of forward contracted cattle if actual weight is different from the specified base weight. Price slides are a measure of the amount of price adjustment as weight changes from a base weight. Not only do prices vary across cattle weights but the size of the price adjustment depends on the weight of the cattle. In the wholesale market, prices for select cuts of boxed beef fell $1.25 to $274.71 per hundredweight (cwt), while prices for choice cuts (BEEF-US-CH) were off $1.03 at $302.56 per hundredweight, USDA said.Feeder cattle prices depend on the weight of the cattle with lightweight cattle typically having the highest price per pound (or hundredweight) and lower prices for heavier cattle. Analysts surveyed by Reuters estimated there were 2.3% fewer cattle on feed on July 1 compared to a year earlier.Īugust lean hogs (LHQ3) gained 2.7 cents to 100.625 cents per pound. USDA will provide a supply update on Friday when it issues a bi-annual inventory report and separate monthly data about the number of cattle on feed. The most-active October live cattle contract (LCV3) fell 0.975 cent to end at 182.75 cents per pound after topping out at 185.75 cents, also a contract high.Īugust feeder cattle (FCQ3) fell 1.7 cents to 245.1 cents per pound. Technical resistance for August cattle was noted at the high end of the contract's 20-day Bollinger range. On a continuous basis, that was the highest price on record for the front-month live cattle contract. Pork export sales fell to 19,200 metric tons from 24,500 metric tons a week earlier.Īugust live cattle futures (LCQ3) dropped 1 cent to settle at 180.325 cents per pound after hitting a fresh contract high of 182.975 cents during the session. Agriculture Department said on Thursday morning that export sales of beef rose to 20,900 metric tons in the week ended July 13, up from 9,900 metric tons the prior week. "We have rallied basically the whole month," said Austin Schroeder, a commodity analyst with Nebraska-based Brugler Marketing. Chicago Mercantile Exchange live cattle futures rose to all-time highs on Thursday, with signs of strong export demand and good sales on the cash market supporting prices, traders said.īut cattle prices closed lower on a round of profit-taking as traders took money off the table ahead of key government supply reports on Friday.
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