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
April Live Cattle and Feeder Cattle futures both showed gains last week after beginning with steep losses Monday. News of tariffs on Canada and Mexico being delayed until April 2 brought on short covering, fueling a more than $7 gain on the week. Trade was slow to develop this week as feedlot operators raised asking prices due to higher futures and gains in the cutout. The cutout value gained $1.28 last week to average $314.07 and rose to $321.20 by Tuesday of this week. It is estimated packers harvested 12,000 more cattle than the previous week for a total of 578,000 head compared to 584,000 a year ago. Fed cattle volume typically increases in March through spring. Meat establishments involved in further processing have been watching the cost of trim and grind increase. Ninety percent lean trim began the year at $332/cwt and has increased every week since and was $381.61/cwt last Friday. January beef exports were 3% higher year-over-year, while value increased 5%. Growth was driven in part by larger exports to China and Canada, while exports to South Korea were steady in volume but higher in value. January beef exports equated to $371.37/head of fed cattle harvested, 3% higher than last year.
High Choice and Prime Beef
High Choice and Prime beef breed steers were higher and brought $192-$210/cwt with some selling to $215/cwt. Choice steers and heifers ranged from $181-$191/cwt. Holstein steers were steady. High grading Holstein steers brought $170-$183 with reports of some to $185/cwt. Lower grading steers brought $145-$170. Silage-fed, under-finished or heavy dairy breed steers brought $78-$144/cwt. Dairy x Beef steers were steady to $2 higher, bringing $155-$200 with some to $205/cwt. Cows were higher. Most cows brought $110-$127/cwt with some to the low $140s. Lower yielding cows brought $75-$110/cwt. Doubtful health and thin cows brought up to $75/cwt. Dairy breed bull calves were higher, selling from $300-$600/head with some heavier, well-managed calves selling to $850/head and a few to $1,000. Dairy breed heifer calves were steady, bringing $200-$550/head. Beef and Beef Cross calves were steady, selling to $1,250/head. Light and lower quality calves sold up to $50.
