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.
Challenges continue in the cattle and beef markets. A holiday-shortened week and the kick-off to grilling season failed to have a large effect on the Choice beef cutout. This could be a sign that demand, while still high, is not ramping up with the warmer weather. The cutout value averaged $392.85 last week, making it about the same as this time last year, while fed cattle prices are about $30/cwt higher than June. Negotiated trade was extremely light last week. Of the 50,000 head reported, half were for deferred delivery. Negotiated prices were $4 lower than the previous week. Cattle owners continue to have leverage, but packers will be hesitant to increase bids unless there is an increase in wholesale prices. USDA estimates last week’s harvest at 448,000 head, 84,000 fewer than the previous week and 40,000 fewer than Memorial Day week last year. Beef harvest is running 9.2% lower than last year and beef production is 6.6% lower than last year. Carcass weights averaged 900 pounds last week across all classes of cattle and that is 30 pounds heavier than the same week last year. An announcement that New World screwworm was found in a three-week-old calf dominated headlines Wednesday night. Both live and feeder cattle futures opened sharply higher Thursday in reaction to the news.
Fed cattle were mostly steady. Top quality beef steers and heifers brought $238-$260/cwt with some bringing up to $263/cwt. Mixed Choice and Select steers and heifers ranged from $228-$238/cwt. High grading Holstein steers were up to $3 lower, bringing $210-$240/cwt. Lower grading steers brought $180-$210/cwt. Silage fed and under finished steers brought $95-$180/cwt. Dairy Beef cross steers were steady to weak, bringing $210-$250 with some higher. Cows were higher, bringing $114-$159/cwt with some still selling into the $170s. Lower yielding cows brought $65-$111/cwt. Doubtful health and thin cows brought up to $65/cwt. Dairy breed bull calves were steady to higher, selling from $800- $1,900/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were mostly steady from $800 to $2,000/head. Light and lower quality calves sold up to $60. New crop lambs brought $210-$280 cwt with highs of $360/cwt.
