Raw materials


in the US for feedlots with capacity of 1,000 or more head totalled 11.6 million head on 1 June 2023. The inventory was 3% below 1 June 2022. Placements in feedlots during May totalled 1.96 million head, 5% above 2022. Net placements were 1.88 million head. During May, placements of cattle and calves weighing less than 600lb were 380,000 head, 600–699lb were 295,000 head, 700–799lb were 480,000 head, 800–899lb were 505,000 head, 900–999lb were 215,000 head, and 1,000lb and greater were 80,000 head. Marketings of fed cattle during May totalled 1.95 million head, 2% above 2022. Other disappearance totalled 74,000 head during May, 3% below 2022.


Beef exports


In June, The USDA Economic Research Service slightly raised its beef production forecast for the year. It is expected to be to 27.1 billion pounds based on recent slaughter data and a faster pace of marketings expected later in the year. Higher anticipated feeder cattle placements in third-quarter 2023 are expected to raise fed cattle marketings in early 2024, which minimally raises the beef production forecast next year to 24.8 billion pounds. The 2023 and 2024 cattle price forecasts are raised on firm demand. At the same time, US cattle experts say that the drought has pushed beef cow herd liquidation and that this has made the beef industry smaller than it needs or planned to be. As soon as its possible, the market will have great incentive to rebuild the size of the US herd, they say.


This is important because 2022 saw a record culling of the beef herd. Already in 2023, liquidation is slowing, with beef cow slaughter down by 11.5% so far.


Hide market


Many sectors, including the hide market, breathed a sigh of relief in June when the International Longshore and Warehouse Union and the Pacific Maritime Association reached a tentative deal on a new six-year contract covering workers at all 29 West Coast ports.


Although the agreement had to be ratified by both parties, the outlook was good. Workers at ports along the entire West Coast had been working without a contract since July 2022 with negotiations dragging on for nearly 13 months. With regard to sales during the second quarter, sellers had interest but most weeks it was not at price levels that they wanted to accept. As it happens whenever the market is bearish, there were plenty of stories about below-market sales cloaked in secrecy.


Many tales were apparently true because producers did indeed improve positions, allowing


Leather International / www.leathermag.com


Butt-branded steers 60 –


50 – 40 – 30 – 20 – 15 – 0


1020304050 Weeks


Heavy Texas steers 60 –


2021 50 – 40 – 30 – 20 – 10 – 0


1020304050 Weeks


Heavy native steers


65 – 60 – 55 – 50 – 45 – 40 – 35 – 30 – 25 – 20 –


0


1020304050 Weeks


Branded cows 30 –


25 – 20 – 15 – 10 – 5 – 0 – 0


1020304050 Weeks


2021


2022 2023


2021


2022 2023


2022 2023


2021 2022 2023


19


Price ($)


Price ($)


Price ($)


Price ($)


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