The following article has been 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. Edited by Mid-West Farm Report.
Higher negotiated trade late last week led to higher cattle prices at auctions this week. Stronger cash and a higher cutout this week helped rally futures markets. Negotiated trade developed early this week as packers searched for market ready cattle.
The Choice cutout value was $7.19 lower last week, averaging $386.75, but was pushing higher early this week. The five-area weighted average for beef breed steers was $235.15 last Friday, although bids to open this week were as high as $238/cwt. Live and carcass weights are bucking seasonal trends as well, averaging about 23 pounds heavier than a year ago.
Favorable weather and temperatures in many cattle feeding regions have influenced rates of gain. Year-to-date beef production is 3.4% less than 2024 with harvest 6.5% less than last year. Last week’s estimated harvest of 568,000 head was 94,000 more than the previous week and 37,000 fewer than a year ago. Steers made up 52% of the total with heifers accounting for 31%. Cow harvest is still lower than last year causing 90% lean prices to reach record prices. This has brought tighter margins for further processors during a time when ground beef demand typically increases.
USDA will release a Cattle on Feed report this week. Early expectations are for lower placements. The staggered timeline to import feeder cattle from Mexico was scrapped last week when New World screwworms were found 370 miles south of the U.S. border. The largest impact of the border closing can be seen in Texas placements being lower for seven consecutive months.
