News Update

November 16, 2017

National Western Angus Bull Sale Returns to Denver

The 2018 National Western Bull Sale, scheduled for Wednesday, Jan. 10 will head back to the National Western Stock Show (NWSS) in Denver. Hosted in the historic Stadium Arena, the event celebrates the rich history and success of the Angus breed.

Last year, almost 2,500 people packed the arena, making the event the largest cattle sale in the building since the 1950s. As the only sale hosted by the Association, the event celebrates the Angus breed’s impact on western ranching and symbolizes the success of the breed for years to come.

“Angus breeders again have consigned another excellent group of bulls for the 2018 NWSS Angus Bull Sale,” said David Gazda, sale manager and director of field services at American Angus Association. “This year, approximately 40 bulls will be offered and are consigned from some of the most respected and progressive breeding programs in the country.”

The Angus Bull Sale Show will kick off NWSS Angus shows on Wednesday at 8 a.m. in the Stadium Arena. A three-person judging committee will place the bulls to help make a sale order.

Continue reading this Angus news release online.

— Adapted from a release by Ali Luety, American Angus Association.

Market Update

Last week’s federally inspected cattle harvest at 623,000 head was a fair reduction on the prior week’s 642,000. The fed steer/heifer market ended the huge rally of $12 per hundredweight (cwt.) during the previous two weeks with a slightly lower average just above $123 per cwt. on a live basis. As last week began, market direction was anyone’s guess, but when live cattle futures in Chicago faltered early, cattle feeders quickly gave up hope. Carcass weights could move higher as the mid-November reports become available, but at this point we remain 16 pounds (lb.) under a year ago on steer carcasses at 901 lb. in the latest data. The October Cattle on Feed Report is due this Friday. The current picture shows fed cattle supplies sufficient but declining through the end of the year.

The unfortunate news for beef buyers was the big run-up in fed cattle prompted packers to run their boxed beef prices significantly higher. The Certified Angus Beef® (CAB®) brand cutout last week was up almost $5 per cwt. with Choice up $5.50 per cwt. and Select up almost $2 per cwt.

Learn more in the full CAB Insider article online.

— Adapted from a release by Paul Dykstra, Certified Angus Beef LLC.

Farm Bureau Survey Reveals Lowest
Thanksgiving Dinner Cost in Five Years

American Farm Bureau Federation’s (AFBF’s) 32nd annual price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $49.12, a 75¢ decrease from last year’s average of $49.87.

The big-ticket item — a 16-pound (lb.) turkey — came in at a total of $22.38 this year. That’s roughly $1.40 per lb., a decrease of 2¢ per pound, or a total of 36¢ per whole turkey, compared to 2016.

“For the second consecutive year, the overall cost of Thanksgiving dinner has declined,” AFBF Director of Market Intelligence John Newton said. “The cost of the dinner is the lowest since 2013 and second-lowest since 2011. Even as America’s family farmers and ranchers continue to face economic challenges, they remain committed to providing a safe, abundant and affordable food supply for consumers at Thanksgiving and throughout the year.”

The shopping list for Farm Bureau’s informal survey includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, and coffee and milk, all in quantities sufficient to serve a family of 10 with plenty for leftovers.

View the full FB news release online.

— Adapted from a release by the American Farm Bureau Federation.

Responding to the Market

Wholesale protein buyers have done a fantastic job of responding to the market throughout 2017. The chart shows a classic relationship between price and quantity sold, buyer demand responding with high sensitivity. Note that buyers sat back throughout the run-up in comprehensive boxed-beef values beginning in late April after steadily staying in the market, building their purchase inventory through the first quarter of the year. From April through mid-July the load counts were simply pacing along as buyers sat on the sidelines awaiting the price break that began to develop in July. The buying frenzy was kicked into gear during August through early October as all signs indicated beef would not be this cheap again in 2017.

Now that we’ve seen a notable uptick in price over the past couple of weeks, last week’s load count dipped to its lowest in five years for the same week, a normal seasonal low point for beef movement in any year just ahead of Thanksgiving.

View the full CAB Insider article online.

— Adapted from a release by Paul Dykstra, Certified Angus Beef LLC.

The Source

We all have our favorite brands. Name a product — trucks, tractors, jeans, boots. You’re bound to have a particular brand that you prefer more than others.

A while back, I drove by a Ford dealership to check out a used truck I saw advertised. It had already sold, so the salesman did his best to interest me in another brand. Poor guy, I had to make it clear that my mind was made up, and I wasn’t looking for anything else. I knew what I wanted, and it was not there.

Cattle buyers don’t have it so easy. The 2016 National Beef Quality Audit (NBQA) showed that nearly 60% of market cattle are black-hided. If you are looking for Angus, how can you be sure? There isn’t an Angus logo branded on a calf’s forehead to guarantee genetics. Some breed characteristics stand out; however, determining just how much Angus influence there is in a group of black-hided calves can be difficult.

One solution is AngusSource®. Enrolling your calves and verifying they have at least 50% Angus genetics does a lot to tell buyers what you are selling and how it might fit their needs. Continue reading this Angus Beef Bulletin EXTRA article online.

— Adapted from a release by Ginette Gottswiller, American Angus Association.

— Compiled by Paige Nelson, field editor, Angus Journal.