Beef,Cows,And,Calfs,Grazing,On,Grass,In,South,West
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Beef,Cows,And,Calfs,Grazing,On,Grass,In,South,West
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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
It is difficult to predict how long current price levels will last or if cattle prices will work higher. There are few factors worth watching to give insight to the market. First is supply. Packers have slowed harvest, but it has not been enough to keep them from having to search for market ready cattle. Two weeks ago brought the lowest non-holiday harvest total in 10 years. Last week’s total of 535,000 was another 14,000 fewer and 58,000 fewer than last year.
Herd rebuilding may have begun in some parts of the country but has been limited. Steers made up 52% of the harvest last week while heifers made up 30%. Heifer harvest would need to be closer to 25% of the total to indicate heifer retention. Additionally, according to the latest Cattle on Feed report, heifers made up 38% of all cattle on feed. The July Cattle Inventory report also showed heifers kept for replacement the least on record and the beef cow herd is the lowest since at least 1973. Cattle numbers are not expected to increase soon. Demand must also be considered. Retail prices have continued to rise and while that should have a negative impact on demand, beef consumption year-to-date is 4% higher than last year. These factors would point to cattle prices remaining steady with the potential to move higher, but not all the price news is bullish.
The smaller harvests have not kept wholesale prices from declining as the Choice beef cutout value fell another $5.68 to average $363.69 last week. Packer margins and fewer available cattle have caused many to cut back on harvest schedules. Some packers will be limiting harvest further, taking the opportunity to perform plant maintenance. If fewer cattle are needed, bids may be lower in the weeks ahead. Beef cow harvest continues to be low. Farmers and ranchers may not be growing their herd, but many are holding on to cows longer and that will help feeder cattle supply. Overall, the fundamentals remain mostly bullish.
Choice Steers
Top quality steers and heifers were steady and strong bringing $222-$245/cwt. Choice steers and heifers ranged from $208-$220/cwt. Holstein steers were higher. High grading Holstein steers brought $195-$220/cwt. Lower grading steers brought $165-$194/cwt. Silage fed, under finished, or heavy dairy breed steers brought $92-$165/cwt. Dairy x Beef steers were steady, bringing $175-$230 with some to $240/cwt. Cows were steady to $3 higher. Most cows brought $120-$150/cwt with some to the low $160s. Lower yielding cows brought $70-120/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were steady, selling from $700-$1,100/head with some to $1,300. Dairy breed heifer calves were higher, bringing $300-$700/head, with some higher. Beef and Beef Cross calves were steady, selling from $700 to $1,500/head. Light and lower quality calves sold up to $60. New crop lambs brought up to$215-$225/cwt.
