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
Fed cattle markets continue to be influenced by outside forces. About 3,800 workers at the JBS in Greeley, Colorado plan to go on strike on March 16. JBS cancelled all harvest operations this week ahead of the strike. The company announced that cattle would be diverted to other facilities. It is unclear if harvest numbers nationally will be impacted until the strike is settled. This comes at a time when harvest has been at levels usually seen only during holiday shortened work weeks. Wholesale prices have been on the rise. Last week’s Choice cutout average jumped from $9.69 to $386.41, was over $390 to open this week, and was $396.70 on Wednesday. Higher beef prices come at a time of concern over rising energy costs. There is speculation if higher gas prices are long-lasting beef demand would be impacted. Last week’s harvest was estimated at 521,000, making it 2,000 more than the previous week. (The estimate for the week ending February 28 was revised from 516,000 to 519,000.) The total was 53,000 head less than the same week last year. Year-to-date harvest is 10% below last year, with beef production trailing by 7.8%. Cash prices were lower last week. Early calls were for steady to lower prices this week. The Five Area Weekly Average sits about $40/cwt higher than this time last year, with the cutout value up $72.34 higher.
Top Quality
Fed cattle were steady to lower this week. Top quality beef steers and heifers brought $223-$239/cwt, with tops of $245 reported. Mixed Choice and Select steers and heifers ranged from $210-223/cwt. High grading Holstein steers were steady to lower at $192-$215/cwt, with some packages selling higher. Lower grading steers brought $170-$192/cwt. Silage fed and under finished steers brought $90-$170/cwt. Dairy Beef cross steers were mostly $1 lower, bringing $190-$233. Cows were mixed. Most cows brought $114-148/cwt, with a few selling into the mid $160s. Lower yielding cows brought $65-$114/cwt. Doubtful health and thin cows brought up to $60/cwt. Dairy breed bull calves were steady to higher, selling from $700-$1,750/head, with some higher. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were steady from $800 to $2,100/head. Light and lower quality calves sold up to $60.
