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 cattle trade was lower last week, although that is based on limited sales. Packers will be buying for a full production week. Wholesale beef prices were higher last week, with the Choice beef cutout value averaging $319.58 for a gain of $2.71. Prices were higher this week.
The cold and icy weather forecasted for the Northern Plains and Upper Midwest will hamper cattle movement and slow gains. This typically causes auction market prices and negotiated bids. December Live Cattle contracts went off the board Tuesday of this week. The nearby February contract, although higher to open post-Holiday trading, is at a discount to cash. Estimated harvest last week was 434,000 head, 183,000 fewer than the prior week and 66,000 fewer than the same week last year.
Cattle Prices
Holiday markets can be challenging to report as prices are based on limited sales and livestock can sell in a wider range. Fed beef cattle were mostly steady to $2 higher this week with some extreme tops over $200/cwt. High Choice and Prime beef breed steers brought $185-$196/cwt with some packages at $198-$200/cwt and up. Choice steers and heifers ranged from $172-$184/cwt.
Holstein steers were steady to $2 higher. High grading steers brought $167-$175 with reports of some packages bringing $175-$177, and a few higher. Lower grading steers brought $134-$167. Silage fed, under finished, or heavy dairy breed steers brought $75-$133/cwt. Dairy x Beef steers were steady and strong, bringing $139-$182, with a few to $188/cwt.
Cows were mixed. Most of the cows brought $80-$110/cwt with some to the high teens. Lower yielding cows brought $60-$80. Doubtful health and thin cows brought up to $60/cwt.
Dairy breed bull calves were steady, selling from $200-$400/head with some heavier, well-managed calves selling to $750/head. Dairy breed heifer calves were higher bringing $200-450/head with some selling higher. Beef and Beef Cross calves were steady and strong, selling to $1,000/head. Light and lower quality calves sold up to $15.
Hogs
The December 1 Quarterly Hogs and Pigs report showed total inventory 1% higher than last December and down slightly from September 1. Breeding inventory, at 6 million head, was up slightly from last year, but down 1% from the previous quarter. Market hog inventory, at 69.8 million head, was up 1% from last year but down slightly from last quarter. The September–November pig crop, at 35.2 million head, was up 2% from 2023. Pigs saved per litter continues to increase with an average of 11.92 for the September-November period, compared to 11.66 last year.
Wholesale pork prices were lower last week, averaging $95.13, making them 83 cents lower. Continued weakness carried into this week with the cutout value at $90.30 on New Year’s Eve. Cash hogs were lower last week as well. The holidays have caused a backup of market hogs with live weights increasing from 289 pounds to over 292 pounds. USDA estimated last week’s harvest at 2.051 million, 530,000 fewer than the previous week and 171,000 less than a year ago. Lean hog futures contracts on the Chicago Mercantile Exchange are 24% higher than this time last year.
Lamb
There was no National Sheep Summary report last week. Cash prices are typically lower after the New Year holiday. Any features or sales at the retail level will be to clean up unsold holiday inventory. The cutout value showed significant weakness, posted at $457.84 compared to $464.76 the previous Friday. Harvest was estimated to be 31,000 sheep and lambs, 7,000 fewer than the previous week and 4,000 less than last year. Shorn lambs brought $150 -$160/cwt with some light lambs selling higher on a limited test.
