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
Talk of increased beef imports, reopening the Mexican border to allow feeder cattle into the U.S. and USDA’s release of a 13-page plan to fortify the beef industry has brought extreme volatility to the market. It has also put beef in the news non-stop for the past week. Feeder cattle futures were especially hard hit with limit down moves before recovering somewhat late in the week. Amid the uncertainty, cash cattle were steady to higher last week. Wholesale beef prices increased with the Choice beef cutout value ending the week at $375.76, nearly $9 higher than the previous Friday. The seasonal peak for cutout values tends to come during the second half of November. Packers may reduce harvest levels to help with their margins until holiday demand begins. Last week’s estimated harvest was 567,000 head, which was 20,000 more than the previous week but 40,000 fewer than the same week last year. There was no Cattle on Feed report last week, although some private firms released their estimates. The average trade guess was cattle in feedlots on October 1 was 2% lower than last year and placements 8.6% lower.
Top Quality
Top quality steers and heifers were steady to $2 lower this week, bringing $218-$230/cwt, with a few to $240/cwt. Mixed Choice and Select steers and heifers ranged from $200-$218/cwt. High grading Holstein steers were fully steady at $194-$220/cwt, with some higher. Lower grading steers brought $170-$193/cwt. Silage fed, under finished, or heavy dairy breed steers brought $90-$170/cwt. Dairy Beef cross steers were steady to weak, bringing $179-$228. Cows were lower. Most cows brought $113- $146/cwt with a few selling into the mid $160s. Lower yielding cows brought $62-112/cwt. Doubtful health and thin cows brought up to $62/cwt. Dairy breed bull calves were mixed, selling from $700-$1,250/head with some to $1,500. Dairy breed heifer calves brought $300-$700/head, with some higher. Beef and Beef Cross calves were lower from $700 to $1,700/head. Light and lower quality calves sold up to $60.
