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
Negotiated sales were at steady money early last week but were 50 cents to $1 higher by Friday. Fed cattle supplies are not expected to increase through the end of the year. Cattle feeders are facing higher break-even prices and packers are wrestling with negative margins. Last week’s harvest estimate of 586,000 head was 25,000 fewer than the prior week and 30,000 fewer than the same week last year. The harvest total was expected to rebound somewhat this week as packers moved through cattle purchases last Friday. Wholesale beef prices have increased over the past 10 days. The Choice cutout value averaged $308.43 last week with increases both late last week and early this week. The average retail price for beef in September was $8.41/pound, 23 cents higher than last September. The decrease in non-fed cattle harvest continues to impact ground beef prices. Ground beef averaged $5.67/pound in September, 56 cents higher than a year ago. Beef exports in August totaled 102,682 metric tons, 6% less than a year ago and the lowest since January. Through the first eight months of the year, beef exports were 3% less than last year but were 4% higher in value. Colombia recently repealed its ban on U.S. beef originating from 14 states in which H5N1 was detected in dairy cows. Exports to Columbia averaged nearly $3 million per month before the ban but fell to just $600,000 in August. Beef export value equated to $391.19 per head in August, down 1% from a year ago.
High Choice And Prime
High Choice and Prime beef breed steers were fully steady to higher, bringing $181-$191/cwt with some packages reported from $189-$194/cwt. Choice steers and heifers ranged from $164-$181/cwt. Holstein steers sold strong. High grading steers brought $163-$174 with some to $177/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-$181 with a few to $187/cwt. Cows were steady to $1 higher. Most of the cows brought $91-$118/cwt with some to the low $130s/cwt. Lower yielding cows brought $75-$89/cwt. Doubtful health and thin cows brought up to $75/cwt. Dairy breed bull calves were steady, selling from $200-$400/head with some heavier, well-managed calves selling to $800/head. Dairy breed heifer calves brought $100-400/head with some selling higher. Beef and Beef Cross calves were steady, selling to $950/head with a few to $1,000/head. Light and lower quality calves sold up to $15/head.
