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
The number of cattle in feedlots on July 1 was 11.3 million head, 0.5% higher than a year ago, according to the latest monthly Cattle on Feed report. The average pre-report estimate was for a 1% increase over last year. The number of cattle placed in feedlots in June totaled 1.56 million head, making it 6.8% below last June while estimates were for a 3% drop. Of the 11.3 million head on feed, 4.48 million were heifers. By percentage, that is about the same as a year ago, and a good indication herd rebuilding is not taking place. There is the possibility that dairy x beef heifers are increasing the number of heifers in feedlots and that could mean that more beef breed heifers are being kept for replacement than the report would indicate.
Packers slowed chain speeds last week with a weekly harvest estimate of 584,000, making it one of the lowest non-holiday week totals in several months. It is unlikely we will see a large increase in harvest during the coming weeks. Beef demand appears to be in a seasonal slump and packer margins are in the red. The Choice beef cutout averaged $317.78 last week, a decrease of $7.00. This week has brought additional losses. Cash prices fell over $2/cwt last week. Feedlot operators will continue to hope for higher prices, but likely will not be rewarded unless wholesale prices improve.
Cattle Prices
High Choice and Prime beef breed steers were lower this week, bringing $183-$193/cwt with some packages reported to $199/cwt. Choice steers and heifers ranged from $168-$183/cwt with mixed grading and those likely to grade Select bringing $150-$168/cwt. Holstein steers were steady. High grading steers brought $164-$177/cwt with some fancy steers to $182/cwt. Lower grading steers brought $130-$164. Silage fed, under finished, or heavy dairy breed steers brought $75 to $130/cwt. Dairy x Beef steers were higher, bringing $140-$195/cwt.
Cows were higher. Most of the cows brought $114-$129/cwt with some to the low $140s/cwt. Lower yielding cows brought $75-$114, 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 $1,300/head.
