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.
Fed Cattle
The fed cattle market ended last week higher. Packers needed to up their bids ahead of a full production week even though their margins remain in the red and their losses continue to grow. Higher feeder and yearling cattle costs will keep feedlot operators pricing cattle higher. Auction markets reported prices anywhere from $1 to $3 higher early this week. Wholesale beef prices were higher last week. The Choice beef cutout value gained $3.44 last week to average $310.77 but showed weakness heading into this week despite the upcoming holiday season.
Beef demand is expected to be strong through the end of the year, but some analysts are warning that retail sales could slow more than typical after January 1 as consumers focus on saving money after holiday spending. It is difficult to compare weekly harvest data against recent historical data because we are weighing it against full production weeks. USDA estimates 528,000 head of cattle were harvested during Thanksgiving week, which is 103,000 fewer than the previous week and 112,000 fewer than the same week last year. USDA increased its export expectations for fiscal year 2025. Exports are projected $400 million higher to $8.8 billion as higher volumes offset lower unit values.
High Choice And Prime Beef
Fed cattle were steady to $1-$3 higher. High Choice and Prime beef breed steers brought $182-$189/cwt with some packages to $196/cwt and up. Choice steers and heifers ranged from $167/cwt to $182/cwt. Holstein steers were $1-$2 higher. High grading steers brought $163-$174 with some higher. Lower grading steers brought $132-$162. Silage-fed, under-finished or heavy dairy breed steers brought $75-$132/cwt. Dairy x Beef steers were higher, bringing $139-$182 with a few to $187/cwt. Cows were $2-$4 higher. Most of the cows brought $94-$109/cwt with some to the mid $120s/cwt. Lower yielding cows brought $70-$93. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were lower, selling from $200-$400/head with some heavier, well-managed calves selling to $675/head. Dairy breed heifer calves were lower, bringing $200-$400/head with some selling higher. Beef and Beef Cross calves were lower, selling to $950/head. Light and lower quality calves sold up to $15.
