Cattle slaughter continues to recuperate from COVID-19 disruptions in April and May. Estimated cattle slaughter for the week ending June 20, 2020 was 656 thousand head, 98.2 % of 12 months earlier ranges.
This relies on estimated slaughter. The newest precise slaughter knowledge for the week ending June 6, 2020 reveals weekly complete cattle slaughter of 627.7 thousand head, 94.four % of the earlier 12 months.
Steer and heifer carcass weights have been heavier 12 months over 12 months all 12 months however the hole has widened significantly with the delays in advertising fed cattle since early April. For the 12 months to date, steer and heifer carcass weights have averaged 27.four kilos heavier 12 months over 12 months.
However, for the primary quarter of the 12 months, carcass weights had been up 20.four kilos 12 months over 12 months, whereas common carcass weights within the ten weeks from April 1- June 6, had been 36.7 kilos heavier 12 months over 12 months.
Year to date beef manufacturing via June 19 is estimated at 12.05 billion kilos, down 3.Eight % 12 months over 12 months. Beef manufacturing within the first quarter of 2020 was up 8.zero % 12 months over 12 months. Second quarter beef manufacturing is projected to be down 14.zero % from one 12 months in the past.
The mixture of recovered slaughter and better carcass weights resulted in weekly beef manufacturing in mid-June estimated to be above 12 months earlier ranges for the primary time in 10 weeks. Weekly beef manufacturing is probably going to exceed 12 months earlier ranges for the third quarter and maybe for the stability of the 12 months. Third quarter beef manufacturing is forecast to be practically 6 % larger 12 months over 12 months. Annual beef manufacturing for 2020 is forecast to be barely larger 12 months over 12 months and a brand new file stage at 27.Three billion kilos.
The June Cattle on Feed report reveals the sluggish return to one thing like regular for feedlots, together with the challenges that stay. The June 1 on-feed stock of 11.67 million head, 99.5 % of final 12 months. One month in the past, the May 1 on-feed stock was 94.9 % of 1 12 months in the past.
The sluggish tempo of May marketings, mixed with rebounding placements, pushed the on-feed complete up sharply in May. The June 1 feedlot complete contains an estimated 5.18 million head of cattle on feed greater than 120 days, up 22.9 % 12 months over 12 months. The backlog of fed cattle will proceed to plague feedlots and fed cattle markets for a lot of weeks.
May marketings had been down 27.5 % 12 months over 12 months, a low complete even after adjusting for the 2 much less enterprise days for the month in contrast to final 12 months. May placements had been simply 1.Three % beneath one 12 months in the past, following April placements down 22 % and March placements down 23 % 12 months over 12 months. It seems that feedlot placements and marketings will return to extra typical seasonal ranges from June ahead via the second half of the 12 months.
With beef provides rising within the second half of the 12 months, beef demand shall be essential. Retail grocery will transition from restricted beef provides in latest weeks to ample provides on the identical time that meals service demand is slowly constructing.
Wholesale boxed beef costs have dropped practically again to pre-COVID-19 ranges and will go decrease into mid-summer as considerable third cattle beef manufacturing might spotlight potential recessionary demand weak spot.