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 cattle market ventured into uncharted territory last week with fed cattle prices reaching record highs. The Five-Area weighted average for steers was $220.99/cwt last Friday. Auction prices were higher to begin this week. Some reported cattle with an overnight stand brought $225/cwt with a smattering of lots selling higher. The seasonality of beef demand certainly hints cattle prices are poised to go higher, but the willingness of consumers to pay even loftier prices remains unclear. Along with cattle prices, the Choice beef cutout value soared $11 higher last week, averaging $344.48. Packers were no doubt aggressive and likely entered this week with higher inventory than recent weeks to work into their production schedules. Harvest numbers are telling the tale of tighter supplies. Last week’s estimate of 559,000 head was 4,000 more than the previous week, but 63,000 fewer than the same week a year ago.
Feeder cattle prices are up as well. At Oklahoma City last week, 500-600 weight cattle averaged $3.65/pound with 700-800 weights averaging $2.86/pound. Exports are still worth noting, even with higher beef prices and strong domestic demand. Trade with China is at a standstill. The tariff on U.S. beef and variety meats to China is 147%, and the country has still not renewed the permits of the 400 beef facilities that would normally export there. China’s favored beef products have been items with limited appeal to U.S. customers such as short plate, rib finger, tail, and honeycomb (tripe). These items can weigh on the market if their value is uncaptured.
High Choice and Prime
High Choice and Prime beef breed steers were $1-$3 higher, selling from $200-$220/cwt with some selling to $223/cwt and above. Choice steers and heifers ranged from $193-$200/cwt. Holstein steers were $1-$2 higher. High grading Holstein steers brought $182-$197/cwt. Steers with an overnight stand brought up to $199/cwt with a few reports of $200/cwt. Lower grading steers brought $155-$181. Silage-fed, under-finished or heavy dairy breed steers brought $83-$154/cwt. Dairy x Beef steers were higher, bringing $165-$210 with some to $217/cwt. Cows were steady to $2 higher. Most cows brought $105-$134/cwt with some to the high $140s. Lower yielding cows brought $65-$105/cwt. Doubtful health and thin cows brought up to $65/cwt. Dairy breed bull calves were sharply higher, selling from $500-$1,000/head with some heavier, well-managed calves selling to $1,350/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-$1,200/head with a few to $1,500. Light and lower quality calves sold up to $60.
