NBW FEATURE:  700-Pound Steers Surge Following Cattle Inventory Report

Rob Cook, February 2nd, 2024

700-Pound Steers Surge Following Cattle Inventory Report

A wave of buying sent prices for 700-799 pound “7-weight” steers markedly higher across the country on Thursday, as markets reacted to bullish implications from the day prior's Cattle Inventory report. The benchmark steer price ended at $250.15 per cwt - its highest point since mid-October.

The buying frenzy aligned with the inventory report from USDA revealing that U.S. cattle numbers have fallen to their lowest levels since 1951. With supply concerns growing, feeder cattle futures exploded higher with the March contract closing up the $4.725 daily limit.

Cash markets followed suit. There were a striking 63 sales of 10-head lots of 7-weight steers that traded for $250 per cwt or more on Thursday alone. Of those, 10 lots brought an impressive $270 or better, showing the fierce competition to acquire available feeder supplies.

Some regional highlights included 34 head weighing 710 pounds from Ogallala, Nebraska that set the high mark at $277 - tying the top price nationally this year. Pratt, Kansas steers sold for $275, also that market’s high for 2023 so far. Multiple additional markets from South Dakota to North Dakota saw their peak prices of the year.

In all, the surge in 7-weight prices in Thursday’s firestorm of trading underscores the bullish response throughout industry circles to shrinking cattle availability going forward. With the largest year-over-year inventory decline in over a decade confirmed this week, the market impact was immediately felt for feeder supplies.