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
Last week’s tariff announcement cast uncertainty in the agricultural markets. Cattle futures moved sharply lower last Thursday and Friday. On Wednesday of this week the additional tariffs on more than 75 countries were paused for 90 days and would go back to the 10% level. China was the only exception. The status of tariffs to and from China have the potential to change daily, but as of this writing there is a 56% charge on U.S. beef going to the country. China is the third largest buyer of U.S. beef, purchasing about 16% of all beef exported. Lean beef imports have been on the rise. Lean trim for grind and further processing has been at record high levels as non-fed harvest continues at a low rate in the U.S. Tariffs have the potential to increase retail ground beef prices and input cost for further processing.
February U.S. beef exports were 5.5% lower on the year with value 4% lower. Year-to-date beef exports are 1% lower. Beef export value per head of fed harvest equated to $432.90 in February. Cash cattle prices were steady to slightly higher last week. Negotiated trade was slow to develop again this week. USDA’s estimated harvest last week was 591,000 head, which is 18,000 fewer than the previous week and 23,000 fewer than the same week last year. The Choice beef cutout value averaged $338.84 last week, an increase of $5.02.
High Choice And Prime Beef
High Choice and Prime beef breed steers were steady, selling from $195-$214/cwt with some selling to $216/cwt. Choice steers and heifers ranged from $185-$195/cwt. Holstein steers were steady to $1 higher. High grading Holstein steers brought $176-$189 with some higher. Lower grading steers brought $150-$176. Silage-fed, under-finished or heavy dairy breed steers brought $80-$150/cwt. Dairy x Beef steers were steady, bringing $155-$200 with some to $208/cwt. Cows were $1-$3 higher. Most cows brought $110-$133/cwt with some to the mid $140s. Lower yielding cows brought $70-$110/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were higher, selling from $400-$600/head with some heavier, well-managed calves selling to $950/head. Dairy breed heifer calves were higher, bringing $200-700/head. Beef and Beef Cross calves were steady, selling from $700 to $1,000/head. Light and lower quality calves sold up to $50.
