Beef grilling
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Beef grilling
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The following report was prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The 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.
Negotiated trade ended last week about $2/cwt off the record highs seen the week before. The Choice beef cutout showed strength last week, rising $3.19 to average $392.65.
Retail sales fell short of what many hoped for during the three-day holiday weekend. Reports of lower cost beef items replacing high end cuts were noted as grillers turned to hamburgers rather than steak. While demand was good, it did not move wholesale prices high enough to put packers in the black.
Last week’s Cattle on Feed report was largely viewed as bearish but did not cause sustained moves lower on the Chicago Mercantile Exchange as traders had anticipated report numbers. Total cattle on feed in feedlots over 1,000 head was 11.6 million on May 1. This makes the inventory 1.8% higher than a year ago, beating last May by 208,000 head. Placements came in at the high end of pre-report estimates at 1.7 million head, 5.5% higher than last April. Forty-five percent of cattle placed weighed 800 pounds and up.
Monthly marketings being 10% less than last April and heavier cattle placing are signs that supply is front-loaded. Cattle are being kept on feed longer, slowing down their move to market. The heavy feeders may have come off drought impacted wheat fields in the Southern Plains. It doesn’t necessarily change the market fundamentals as fed cattle supply remains tight. For the first four months of this year, 630,000 fewer fed cattle have been marketed than last year, and the total is 888,000 under the five-year average.
Fed cattle were a full $2-$3 lower this week. Top quality beef steers and heifers brought $238-$258/cwt with some higher. Mixed Choice and Select steers and heifers ranged from $228-$238/cwt. High grading Holstein steers were $2-$3 lower at $210-$244/cwt. Lower grading steers brought $180-$210/cwt. Silage fed and under finished steers brought $95-$180/cwt. Dairy Beef cross steers were $2-$3 lower, bringing $210-$250 with some higher.
Cows were lower from $111-$153/cwt with some still selling into the170s. Lower yielding cows brought $65-$111/cwt. Doubtful health and thin cows brought up to $65/cwt.
Dairy breed bull calves were mixed, selling from $800- $1,750/head with some higher. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were mostly steady $800 to $2,100/head. Light and lower quality calves sold up to $60.
