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 And Beef
This weekend officially kicks off grilling season. The anticipated retail beef demand has spurred wholesale prices to record highs. The Choice beef cutout averaged $350 last week and was $354.81 this Tuesday. The average retail price of beef in April was $8.83/pound, 9 cents higher than in March. Retail prices will continue to increase if summer demand holds. Likewise, processors have seen input prices never experienced before. After three weeks of lower prices, summer demand for ground beef has caused 90% lean to reverse course and rise to $377.76/cwt last Friday. Cow prices and 90% lean move together and the supply of non-fed cattle (cows and bulls) is extremely tight. Cows made up just 16% of all cattle harvested last week. Last week’s harvest estimate was 556,000 head, 3,000 fewer than the week before and 41,000 fewer than the same week last year. Year-to-date harvest is 6.1% less than a year ago. Negotiated sales last week were about 50 cents lower with a Five Area weighted average for beef breed steers at $226.36/cwt. The average live weight has been moving lower, an indication that fed cattle supply is tight.
High Choice And Prime Beef
High Choice and Prime beef breed steers were $1-$3 higher again this week, selling from $205-$228/cwt with reports of some to $230/cwt. Choice steers and heifers ranged from $195-$205/cwt. Holstein steers were steady to $1 higher. High grading Holstein steers brought $185-$200/cwt. Steers with an overnight stand brought up to $202/cwt, with reports of some selling higher. Lower grading steers brought $155-$185. Silage-fed, under-finished or heavy dairy breed steers brought $85-$155/cwt. Dairy x Beef steers were steady to $2 higher, bringing $165-$214 with some as high as $220/cwt. Cows were $2-$5 higher. Most cows brought $110-$138/cwt with some to the low $150s. Lower yielding cows brought $68-$110/cwt. Doubtful health and thin cows brought up to $68/cwt. Dairy breed bull calves were steady to strong, selling from $600-$1,100/head with some heavier, well-managed calves selling to $1,500/head. Dairy breed heifer calves were higher, bringing $200-$700/head with a few to $1,000. Beef and Beef Cross calves were steady, selling from $700-$1,600/head. Light and lower quality calves sold up to $60.
