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
Cattle prices were lower with beef production dropping to 491.2 million pounds compared to 513.2 the previous week. Packers were short inventory coming into this week and that seemed to fuel fully steady prices at auction markets. Good Friday will shorten the production week with very little in the way of negotiated trade developing. Last week’s estimated harvest of 564,000 head was 27,000 fewer than the week prior and 34,000 head fewer than the same week last year.
Live Cattle futures prices are recovering from last week’s tariff confusion. The dollar is decreasing in value and that could help agriculture exports and offset the impact of some tariffs put on U.S. products. China has not renewed the export licenses for about 300 U.S. packers and processors and sales to the country have ground to a halt. Australia has been reportedly filling the gap. Weekly net export sales of 17,500 metric tons of beef were 47% higher from the previous week and 78% higher than the prior four-week average. The retail price of beef domestically averaged $8.74/pound in March compared to $$8.63/pound in February. Wholesale prices were lower last week with the Choice cutout value falling $2.05 to average $336.79. The latest World Agricultural Supply and Demand Estimates (WASDE) report raised beef production expectations based on heavier carcass weights and the likelihood of higher cow and bull harvest. Next week’s Update will include information from the April Cattle on Feed report. It is expected the second quarter will be the tightest for fed cattle supplies this year.
High Choice and Prime Beef
High Choice and Prime beef breed steers were steady and strong, selling from $195-$214/cwt with some selling to $216/cwt. Choice steers and heifers ranged from $185-$195/cwt. Holstein steers were $1 higher. High grading Holstein steers brought $178-$190 with some higher. Lower grading steers brought $154-$177. Silage-fed, under-finished or heavy dairy breed steers brought $83-$154/cwt. Dairy x Beef steers were steady, bringing $155-$200 with some to $212/cwt. Cows were $1-$2 higher. Most cows brought $114-$134/cwt with some to the high $140s. Lower yielding cows brought $70-$114/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were lower, selling from $400-$600/head with some heavier, well-managed calves selling to $900/head. Dairy breed heifer calves were lower, bringing $200-$600/head. Beef and Beef Cross calves were steady selling from $700-$1,000/head with a few to $1,300. Light and lower quality calves sold up to $50.
