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.
Both Live and Feeder Cattle contracts at the Chicago Mercantile Exchange were sharply lower last week. The August Live Cattle contract was $4.50 lower while the October contract ended the week $6.60 lower, the lowest in six weeks. The September Feeder Cattle contract was $11.60 lower on the week. All contracts opened this week lower. Many analysts are pointing to weakness in financial markets as a factor leading to market pressure. This pressure will carry over to the cash market this week. Fewer feeder cattle are expected at auction markets as sellers hold off to wait for a turnaround. Cash cattle were 50 cents lower last week with limited activity. Last week’s estimated cattle harvest was 593,000 head. The total was 7,000 fewer head than the previous week and 22,000 fewer than a year ago. Cows made up 18% of the total compared to 20.3% the same week last year. Cow harvest typically begins increasing after Labor Day. Year-to-date cattle harvest is 4.4% lower than 2023. Beef production is 1.5% lower year-to-date. Packers came into this week short of cattle. Cattle owners tried to use that as leverage for higher prices, but activity remained slow to open the week with bids $1/cwt lower as packers continue to slow production. The Choice beef cutout value was $1.01 higher last week, averaging $314.12.
High Choice and Prime Beef
High Choice and Prime beef breed steers were steady to $1 lower, bringing $185-$193/cwt with some packages reported to $200/cwt. Choice steers and heifers ranged from $170-$185/cwt with mixed grading and those likely to grade Select bringing $152-$170/cwt. Holstein steers were steady to $1 lower. High grading steers brought $166-$178/cwt with some fancy steers to $183/cwt. Lower grading steers brought $130-$166. Silage-fed, under-finished or heavy dairy breed steers brought $75-$130/cwt. Dairy x Beef steers were higher, bringing $140-$193/cwt. Cows were sharply higher. Most of the cows brought $109-$140/cwt with some to the high $140s/cwt. Lower yielding cows brought $75-$109 with doubtful health and thin cows bringing up to $75/cwt. Dairy breed bull calves were steady from $200-$400/head with some heavier, well-managed calves selling to $660 and some to $700/head. Beef and Beef Cross calves were steady to lower, selling to $910/head with a few to $1,000/head.
