Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Cattle
Some Midwestern auction markets reported record high prices for fed cattle this week. Although top prices varied by location and weighing conditions, it was obvious packers were aggressively seeking cattle. These price levels may be difficult to maintain, but the possibility cannot be ruled out. Packer margins are still negative but have improved. More cattle were on offer in the country this week. Negotiated bids are higher although feedlot operators are holding on to higher asking prices. Wholesale prices have been working higher.
The Choice beef cutout value averaged $324.58 last week, a gain of $5.00. Further processors have been burdened with high input costs with 90% lean trimmings continuing to climb with a Tuesday price of $336.65. This coupled with continued lower non-fed harvest will continue to support cow prices. Last week’s estimated harvest of 498,000 was 64,000 head more than the previous week and 44,000 fewer than last year. Just 17% of that total were cows. The average live weight of all cattle harvested last week was 1,433 pounds compared to 1,411 a year ago. The Five Area Weighted average for fed steers was 1,478 for the same period with an average carcass weight of 964 pounds. There are reports the ban on Mexican feeder cattle imports will be lifted the week of January 20. No official announcement has been made, however.
Top Quality Fed Cattle
Bidding was active and demand was strong for most classes of cattle this week. Fed beef cattle were sharply higher with some extreme tops over $210/cwt. Many auction markets reported record high prices paid for top quality fed cattle. High Choice and Prime beef breed steers brought $190-$200/cwt with some packages selling from $201-207/cwt and some higher. Choice steers and heifers ranged from $180-$190/cwt. Holstein steers were steady to $2 higher. High grading steers brought $168-$177 with reports of some packages topping $180. Lower grading steers brought $140-$167. Silage-fed, under-finished or heavy dairy breed steers brought $75-$140/cwt.
Dairy x Beef steers were higher, bringing $142-$185 with a few to $190/cwt. Some beef type crossbreds sold to $200/cwt and higher. Cows were higher. Most of the cows brought $90-$114/cwt with some to the high $120s. Lower yielding cows brought $60-$90. Doubtful-health and thin cows brought up to $60/cwt. Dairy breed bull calves were steady, selling from $200-$400/head with some heavier, well-managed calves selling to $725/head. Dairy breed heifer calves were higher, bringing $200-500/head. Beef and Beef Cross calves were steady, selling to $950 with some bringing $1,000/head. Light and lower quality calves sold up to $15.
