Ed. Note: Media outlets planning to reprint the market update should include the following text at the beginning: 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 cattle market has been trying to gain traction after six weeks of lower prices. The Five Area Weighted Average fed cattle price was 50 cents lower last week, but some late Friday negotiated sales were $1-$2/cwt higher. Auction markets were reporting prices $1/cwt higher at the beginning of this week. Negotiated trade did not develop this week, likely waiting until after Friday’s Cattle on Feed report is released. The Choice carcass cutout was $3.56 lower than last week, averaging $307.24. The average retail price of beef in August was $8.52/pound, 8 cents more than July and 3.5% higher than last August. Ground beef is still seeing the largest monthly increases in price when compared to muscle cuts.
Harvest pace bounced back from the holiday-shortened week with an estimated 620,000 head processed last week. That is 78,000 more head than the previous week and 11,000 fewer than last year. A World Agricultural Supply and Demand Estimates (WASDE) report was released last week. USDA raised 2024 beef production estimates by nearly 60 million pounds. If realized, 2024 beef production would be just .06% less than 2023. The 2025 beef production projection was increased by 180 million pounds and that would be a 4.4% decrease from 2024. Along with the increased production estimates, the expected average price for beef breed fed steers was lowered by $3.00 for the remainder of this year, and by $5.00 for 2025.
BQA 3 Year Mark
2024-25 is the three-year mark for many Wisconsin farmers needing to get recertified in the Beef Quality Assurance (BQA) program. In 2018, some packers announced they would only purchase cattle from farms selling finished cattle that are BQA Certified. The UW-Madison Division of Extension and the Wisconsin Beef Council will be hosting in-person Beef Quality Assurance (BQA) certification meetings over the coming months. A full list of dates and registration form can be found at https://www.beeftips.com/cattlemens-corner/beef-quality-assurance/bqa-registration-form/?clearcache=1.
Prime and High Choice
High Choice and Prime beef breed steers were mostly steady to $1 higher, bringing $180-$185/cwt with some packages reported from $188-$190/cwt. Choice steers and heifers ranged from $163-$179/cwt. Holstein steers were steady to strong. High grading steers brought $163-$175/cwt with some fancy steers to $178/cwt. Lower grading steers brought $130-$163. Silage fed, under finished or heavy dairy breed steers brought $75-$130/cwt. Dairy x Beef steers were steady, bringing $138-$180 with a few to $185/cwt. Cows were steady to $1 higher. Most of the cows brought $90-$119/cwt with some to the low $130s/cwt. Lower yielding cows brought $75-$89. Doubtful health and thin cows bringing up to $75/cwt. Dairy breed bull calves were stronger, selling from $200-$400/head with some heavier, well-managed calves selling to $725/head. Diary breed heifer calves brought $100-300 with some to $400/head. Beef and Beef Cross calves were higher, selling to $950/head.
