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.
Packers were forced to up their bids last week, even with lower wholesale beef prices and continued slower harvest pace. The five-area weighted average was $2 higher last week.
The estimated harvest last week of 600,000 was 16,000 head more than the previous week and 16,000 fewer than the same week last year. There are reports that negotiated trade was slow to start this week. Heat in the Southern Plains and storms moving through part of Nebraska this week may mean a harvest total equal to or lower than last week.
The Choice beef cutout value averaged $313.11 last week, a loss of $4.67.
USDA released a Monthly Slaughter report last week. Beef production in June totaled 4.27 billion pounds, 9% less than last year. Harvest totaled 2.54 million head and that was 12% less than last June. The average live weight of 1,382 lbs./head was 44 pounds heavier than a year ago. The heavier cattle are having an impact. So far this year, 87% of fed cattle are grading Choice or Prime. The number of Yield Grade 4s and 5s has increased as well, however, to average about 22%. Non-fed beef production (cows and bulls) is down 13% year-to-date, with cow harvest more than 15% lower than last year and bull harvest down nearly 8%. This has caused 90% lean trimmings (used in the production of ground beef) to hit record highs and they are now higher than many cuts from the round.
Cow and bull prices at auction markets have reached historic highs.
High Choice and Prime beef breed steers were steady and strong, bringing $185-$193/cwt with some packages reported to $200/cwt. Choice steers and heifers ranged from $170-$185/cwt, with mixed grading and those likely to grade Select bringing $152-$170/cwt. Holstein steers were higher. High-grading steers brought $166-$179/cwt with some fancy steers to $183/cwt. Lower grading steers brought $130-$166. Silage-fed, under-finished, or heavy dairy breed steers brought $75 to $130/cwt. Dairy x Beef steers were higher bringing $140-$193/cwt. Cows were mixed. Most of the cows brought $104-$130/cwt with some to the low $140s/cwt. Lower yielding cows brought $75-$104 with doubtful health and thin cows bringing up to $75/cwt. Dairy breed bull calves were steady from $200-$400/head, with some heavier, well-managed calves selling to $670 and some to $700/head. Beef and Beef Cross calves were steady to lower, selling to $900/head with a few higher.
