See the raw data for this article from the USDA Cattle Contract Summary.
Cattle Contracts Library Summary: Insightful Data from 12th January 2024
In the most recent USDA Cattle Contracts Library Summary, a nuanced picture of the cattle market emerges, characterized by strategic pricing decisions and varied market preferences. As of 12th January 2024, the data reveals a slight decrease in active contracts, down by 2 from the previous count, stabilizing at 162.
Base Price and Volume Dynamics
The bulk of active contracts, representing 75%, are anchored to USDA report prices, a testament to the report’s reliability as a pricing benchmark. When delving into the actual volume of cattle, a staggering 945,393 head were transacted in December 2023, with USDA report prices underpinning a significant 76.91% of this volume. These figures underscore the USDA report’s critical role in shaping market transactions.
Moreover, the majority of contracts, 93.27%, applied base price premiums or discounts, indicating a market that values differentiation based on specific cattle attributes. This customization in pricing, often tied to quality and weight specifications highlights the industry’s focus on value-added cattle transactions.
The market’s adaptability is further evidenced by a base price adjustment in 34.13% of contracts, which allows for flexibility in response to fluctuating market conditions and input costs. Meanwhile, actual volume trends depicted in a rolling 12-month perspective reveal a slight decline as of December 2023, hinting at potential shifts in supply or demand factors.
Contract Specifications and Market Preferences
The latest summary also sheds light on contract specifications that are shaping the market. Quality and weight remain pivotal, with 88.27% and 83.95% of contracts, respectively, highlighting these features. Notably, the branding of cattle, which signifies a distinct quality and traceability, is a chosen specification in over half of the contracts, demonstrating the industry’s commitment to product differentiation and market segmentation.
Market Insights
The data illustrates a concentrated reliance on a few pivotal reports, with the Kansas Weekly Direct Slaughter Cattle – Negotiated Purchases report being utilized in 37.22% of contracts specifying a USDA Report. This reliance indicates market confidence in specific USDA reports to inform contract terms.
Looking Ahead
The trajectory of the cattle market, as revealed by the Cattle Contracts Library Summary, is one of keen attention to quality, price precision, and market-driven decisions. As the industry continues to navigate a complex economic landscape, these insights will be pivotal for stakeholders aiming to optimize their strategies in the evolving cattle market.
The full Cattle Contracts Library Summary is refreshed weekly, offering stakeholders timely and relevant market information.
This article aims to distill the essence of the detailed data provided by the USDA, facilitating understanding and strategic decision-making for professionals in the meat and livestock industry. For a more comprehensive view of the contracts and specifications, stakeholders are encouraged to consult the complete USDA Cattle Contracts Library Summary.
