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.
Cash Cattle
Cash cattle were $1.80 lower last week, making it the fourth consecutive week of lower negotiated bids. Lower beef wholesale prices have been a burden on the market. Last week’s Choice beef cutout averaged $310.63, making it $5.20 lower than the previous week. That makes the cutout value $4.35 lower than this time last year. Live Cattle futures contracts at the Chicago Mercantile Exchange showed strength last week but struggled to maintain those gains this week. Some traders are citing a downturn in equities as a source of pressure on the futures market. Typically, cattle futures rally in early September and begin a sell-off later in the month. Last week’s estimated harvest was 611,000 head, 3,000 head more than the previous week and 20,000 fewer than the same week last year. Negotiated country bids were not expected to develop until late this week. Feeder cattle prices have been on the rise at auctions recently. Auctions in the South and West will transition to fewer yearlings on offer and a higher percentage of calves. Some auction markets in the U.S. are reporting larger runs, with many of the offerings made up of unweaned calves. The larger number of calves coming to market would pressure the market in a typical year, but feeder cattle supplies are expected to be tighter than in past years. The fall months usually bring a higher number of beef cows to market. It is an area worth watching to see if the trend holds this year.
High Choice And Prime Beef
High Choice and Prime beef breed steers were mostly steady with last week, bringing $180-$186/cwt with some packages reported to $192. Choice steers and heifers ranged from $165 to $180/cwt. Holstein steers were steady. 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-$182/cwt. Cows were lower. Most of the cows brought $90-$118/cwt with some to the low $130s/cwt. Lower yielding cows brought $75-$90, with doubtful health and thin cows bringing up to $75/cwt. Dairy breed bull calves were lower, selling from $200-$400/head with some heavier, well-managed calves selling to $625/head. Diary breed heifer calves brought $100-300 with some to $500/head. Beef and Beef Cross calves were lower, selling to $900/head with a few to $925/head.
