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
USDA’s March 1 Cattle on Feed report appeared bullish at first glance. The February placement number stood out, especially at 1.55 million head, making it 18% below a year ago. Last year brought the highest February placement number on record, so this year is being compared to a large number. Winter weather also wreaked havoc last month, with some auction markets canceling their regular feeder cattle markets and others seeing smaller than usual runs. The number of cattle in feedlots over 1,000 head on March 1 was 11.6 million head, 2% less than last year. Harvest last week was estimated at 560,000 head, 24,000 fewer that the week prior and 33,000 fewer than last year. February’s harvest total was 11% less than last year, with beef production falling 7%. The average live weight of all cattle harvested in February was 1,432 pounds, 48 pounds heavier than a year ago. Fewer market-ready cattle available and weather hampering cattle movement were factors in the drop. Tighter beef supply has bolstered wholesale prices with the Choice beef cutout averaging $325.52 last week, a gain of $5.95. The cutout carried momentum into this week and was $338.30 on Wednesday of this week.
High Choice and Prime Beef
High Choice and Prime beef breed steers were $1-$2 higher, selling for $195-$214/cwt with some selling to $216/cwt. Choice steers and heifers ranged from $185-$195/cwt. Holstein steers were steady to $2 higher. High grading Holstein steers brought $174-$187 with reports of some to $191/cwt. Lower grading steers brought $147-$173. Silage fed, under finished, or heavy dairy breed steers brought $78-$146/cwt. Dairy x Beef steers were higher, bringing $155-$200 with some to $210/cwt. Cows were higher. Most cows brought $107-$133/cwt with some to the low $140s. Lower yielding cows brought $73-$107/cwt. Doubtful health and thin cows brought up to $73/cwt. Dairy breed bull calves were steady and strong, selling from $400-$600/head with some heavier, well-managed calves selling to $900/head. Dairy breed heifer calves were steady bringing $200-550/head with some as high as $950/head. Beef and Beef Cross calves were steady, selling from $600 to $1,200/head. Light and lower quality calves sold up to $50.
