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.
The announcement that the U.S. will import 300,000 metric tons, or 660 million pounds, of beef in the next 90 days without being subject to out-of-quota tariffs sent the market into disarray and angered many beef producers and farm groups. The futures market traded sharply lower on Friday before recovering by the end of the session but then closed lower on Monday and Tuesday. The announcement overshadowed a bullish USDA Cattle on Feed report. On-feed inventory on August 1 was 1.8% higher than last year, but pre-report estimates had guessed the number would be closer to 2.5% higher. While the average trade guess was for placements to be about 4% lower than July last year, the USDA put placements at 1.4 million head, making it 11% below last year and the lowest placement number in the 30 years of the report. Fed cattle marketed were 7% lower than last year. Indications that heavier cattle make up the largest category of the on-feed inventory continues to pressure the market. The Choice beef cutout was sharply higher last week, gaining $15.03 to average $388.27. The cutout value averaged $406.61 the same week last year. The five-area steer price was $225.29/cwt last week, compared to $244.92 last year. The USDA also released its monthly Livestock Slaughter report last week. Cattle harvest was 7% lower than July 2025 with beef production 5% lower. Wisconsin cattle harvest in July was 8.5% lower than last year. Last week’s estimated harvest was 523,000 head, making it 6,000 more than the previous week and 33,000 less than last year. The Douglas, Arizona port reopened to Mexican cattle imports this week. The USDA reported 692 head of Mexican feeder cattle crossed the border into the U.S. on Monday, with 24 head rejected due to cuts, scratches or other lesions.
Fed Cattle
Fed cattle prices were lower this week. Top quality beef steers and heifers brought $212-$225/cwt. Some high-grading, high-yielding steers with an overnight stand sold up to $229/cwt. Mixed Choice and Select steers and heifers ranged from $198-$212/cwt. High-grading Holstein steers were steady to weak, bringing $195-$215/cwt. Lower-grading steers brought $189-$195/cwt. Silage fed and under finished steers brought $95-$188/cwt. Dairy Beef cross steers were lower, bringing $205-$224 with some higher. Cows were $2-$5 lower, bringing $109-$137/cwt with some selling into the mid $150s. Lower yielding cows brought $50-$109/cwt. Doubtful health and thin cows brought up to $50/cwt. Dairy breed bull calves were $100-$300 lower, selling from $500-$1,350/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were lower from $700-$1,600/head. Light and lower quality calves sold up to $60. Fed lambs over 100 pounds brought $220-$300/cwt with light lambs selling from $260-$325/cwt.
