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
Last week’s Cattle on Feed report repeated the story of tightening fed cattle supplies. Feedlot inventory on June 1 totaled 11.44 million head, 1.2% lower than last year. Placements came in below expectations at 1.89 million head, 160,000 less than May 2024, for a decrease of 7.8%. Over half the drop in placements can be attributed to declines in Texas, a reflection of the closed border between the U.S. and Mexico. Placements during the past six months stand at 10.36 million head, 4% less than the same period a year ago. The number of cattle on feed for over 180 days, however, is 27% more than last June so supplies appear to be front-loaded. Part of the increase can be explained by cattle remaining on feed longer and fed to heavier weights.
The latest USDA Monthly Slaughter report shows May harvest 11% lower than last year, with beef production 9% lower. January through May harvest was 5.9% lower, with beef production trailing last year by 2%. Packers were successful at buying cattle with lower bids last week. Wholesale prices have continued to rise, helping to improve packer margins. The Choice beef cutout value averaged $388.36 last week, an increase of $14.68. Packers opened the week offering steady bids but were finding few takers and that will push most trade to late week. Last week’s estimated harvest of 554,000 head was 4,000 fewer than the week before and 62,000 fewer than last year.
High Choice And Prime Beef
High Choice and Prime beef breed steers were $2-$3 lower. Top quality steers and heifers brought $215-$236/cwt with reports of some to $238/cwt. Choice steers and heifers ranged from $198 to $214/cwt. Holstein steers were steady to $2 lower. High grading Holstein steers brought $190-$210/cwt with a few higher. Lower grading steers brought $160-$190/cwt. Silage-fed, under-finished or heavy dairy breed steers brought $90-$160/cwt. Dairy x Beef steers were mostly $1-$3 lower, bringing $168-$217 with some higher. Cows were $1-$3 lower. Most cows brought $110-$138/cwt with some to the low $150s. Lower yielding cows brought $70-$110/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were mixed, selling from $700 to $1,150/head with some heavier, well-managed calves selling to $1,250/head. Dairy breed heifer calves were steady, bringing $300-$900/head with a few to higher. Beef and Beef Cross calves were lower, selling from $700 to $1,600/head. Light and lower quality calves sold up to $60. New crop lambs brought $135-$199/cwt. with some to $210/cwt.
