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.
Higher negotiated bids at the end of last week have cattle feeders hoping we’ve seen the summer lows. There is usually a bounce as we get closer to Labor Day, although some bearish factors may be in play. Slower marketing and heavier cattle are weighing on the market. Last week’s harvest total of 512,000 head was 16,000 fewer than the previous week and 25,000 less than a year ago. Fed cattle made up 417,000 head of the total, the lowest non-holiday number since spring. While the smaller harvest helped boost wholesale prices, it’s estimated there are 250,000 more cattle in feedlots than last July and only 100,000 head fewer than the record high set in 2019.
While overall cattle numbers are historically low, there is a large number nearing market readiness. The number of cattle that have been in feedlots over 180 days are record large. June cattle harvest was 2% lower than last year, although beef production was 1% higher. Wisconsin mirrored the national numbers. The Choice cutout value averaged $362.81 last week, making it $2.11 lower, but it has been working higher this week. There was news early this week that an agreement had been reached to end the lockout at the Cargill Fort Morgan packing plant, but the agreement was not ratified by the union and the plant remains closed. Imports of Mexican feeder cattle are scheduled to resume August 24. The port at Douglas, AZ will be the first to open on a conditional basis. The port in Columbus, NM is scheduled to accept cattle on September 14, with that state’s port in Santa Teresa opening September 21. The import process includes additional steps that will slow cattle movements. It is unclear how many cattle and what weight classes are available because Mexico has expanded feeding capacity and packing capabilities during the border shutdown.
Fed Cattle
Fed cattle prices were higher last week. Top quality beef steers and heifers brought $227-$238/cwt. Some high-grading, high-yielding steers with an overnight stand sold from $238-$240.00/cwt. Mixed Choice and Select steers and heifers ranged from $202-$227/cwt. High-grading Holstein steers were steady to stronger, bringing $205-$220/cwt. Lower-grading steers brought $175-$205/cwt. Silage fed and under finished steers brought $95-$175/cwt. Dairy Beef cross steers sold stronger, bringing $210-$235 with some higher. Cows were higher, bringing $119- $159/cwt with some selling into the $170s. Lower yielding cows brought $55-$112/cwt. Doubtful health and thin cows brought up to $60/cwt. Dairy breed bull calves were lower, selling from $600- $1,400/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were lower from $800 to $1,700/head. Light and lower quality calves sold up to $60. Fed lambs over 100 pounds brought $200-$280/cwt with light lambs selling from $240-$295/cwt.
