Market Report - July 27th, 2022

Cattle Market Report:

Of big concern right now in the cattle market is the ability, or willingness, of consumers to continue to pay high prices at the grocery store. Boxed beef is still high, even showing a dollar gain to land at $269. With concerns of a recession looming, and the ever-present interest rate changes, consumers are likely to move on to other, more affordable, protein sources. However, a positive to this, is that packer margins are strong which keeps them interested in continued elevated slaughter schedules. The liquidation of cattle from Texas ranchers struggling to keep their cattle on grass is having its impact. Prices are working lower, especially in those markets.

It also appears that the willingness for cattle feeders to pay higher prices is waning. There are plenty of people bullish on the fall market as drought-afflicted ranchers sell off early. However, with the expected fall calf run coming up in a few months, there is likely going to be strong inventory for the next little while.

Grain Market Report:

Wheat has been on a correction with news that Ukraine and Russia have an agreement on exports. The realty of that coming to fruition is still debatable as evidenced by the prompt bombing of a key Ukrainian port within hours of the announcement. However, it seems that the market is still reacting to the announcement. Hopefully, slightly lower pricing in this sector will help support cattle prices. I would anticipate prices heading back up though with the extent of drought across the country and the continued uncertainty with the Ukrainian exports. Soybeans are trending up with continued drought as well, and the heat bubble across a large part of the U.S. Corn is also trending up recently with information that the European crop is anticipating lower yields than normal.

August through December line graph designating the state of the cattle, feeders, corn, and soybeans grain markets for the week of July 27, 2022.
Cattle and Grain Markets for July 27, 2022 ($/cwt)

Sheep Market Report:

Sheep markets were steady to up this week. San Angelo was $10-$20 up for lambs compared to last week. Fredericksburg and Hamilton held steady at $20 higher. Goldthwaite was still trending lower and New Holland, PA had a weak showing. The USDA estimated domestic lamb and mutton meat production for the week ending July 9th totaled 2.28million pounds on a 33,000 head slaughter week, up from 1.73 million pounds and25,000 head for the previous weeks shortened week. Imported lamb and mutton meat for the week ending July 9th totaled approximately 4.04 million pounds which equates to 234 percent of the domestic production for the same period.

Feeder lamb prices, medium and large 1-2, 60-90 lbs, Wtd Avg, $/cwt for the current and prior week. Sheep market report for the week of July 27, 2022. Light Weight Slaughter Lamb Prices, Choice & Prime 1-3, 60-90 lbs, Wtd Avg, $/cwt for the current and prior week. Sheep market report for the week of July 27, 2022. Slaughter lamb prices, Wtd. Avg, $/cwt for the current and prior weeks. Sheep market report for the week of July 27, 2022.
Sheep markets for week ending July 22, 2022

Hay Market Report:

Exporters and dairies are the in tight competition right now for quality hay, of which there is short supply. Exporters are also dealing with a strong dollar. Total harvest estimates are still down with many producers expecting one less cutting than normal. Areas with good irrigation are at a distinct advantage right now. Freight has come down slightly, but it will need to come down more to make a big difference in moving hay across regions. Many hay users are looking at their options before purchasing, hoping to find a more affordable alternative.

Ross Bronson

Ross was born to a dairyman in Southeast Idaho. Although his family left the dairy when he was young, his father instilled in him the values of agriculture and a love for its way of life. Ross has a Master's Degree in Ranch Management from the King Ranch Institute and has consulted for many ranches on issues such as precipitation data collection, marketing strategies for calves, cost of gain vs. marginal incremental value of fed cattle, regenerative practices for ranches, and range management and grazing strategies. Ross is excited to have found a way to continue helping ranches identify the needs of their operations and the tools necessary to address those needs.

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