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
The latest Cattle on Feed report was overshadowed by the meteoric rise in feeder cattle prices. Auction markets in many parts of the country reported record prices paid for feeder cattle in all weight categories. The investment in feeders brings significant risk at these levels, but optimism that the fed cattle market will hold is driving prices. Reports of a human case of New World screw worm in the U.S. set off alarms in commodity trading algorithms, causing both live and feeder cattle futures to close mixed on Monday, but both recovered significantly over the rest of the week.
The Cattle on Feed report did not cause much market disruption. The on-feed inventory on August 1 was 98.4% of last year and in line with the average trade estimate of 98.1%. The current feedlot inventory represents and eight-year low. The July placement of 1.60 million head was 6.1% below last year, compared to the average trade estimate of 8.8%. Although higher than estimates, it is the lowest July placement number since 2016. The Choice beef cutout value continues its upward trajectory, increasing $15.22 last week to average $406.61. Last week’s estimated harvest of 547,000 head was 17,000 more than the previous week and 62,000 fewer than a year ago. July beef production was 4% below last year with harvest 4% lower. The average weight of cattle in July was 30 pounds heavier than last year at 1,410 pounds.
Top Quality
Top quality steers and heifers were mostly steady to $2 higher, bringing $222-$246/cwt. Choice steers and heifers ranged from $208 to $221/cwt. High grading Holstein steers were $2 higher and brought $194-$222/cwt. Lower grading steers brought $170-$193/cwt. Silage-fed, under-finished or heavy dairy breed steers brought $92-$170/cwt. Dairy Beef steers were steady, bringing $177-$235 with some higher. Cows were lower. Most cows brought $110-$146/cwt with some to the high $150s. Lower yielding cows brought $65-$118/cwt. Doubtful health and thin cows brought up to $65/cwt. Dairy breed bull calves were steady, selling from $700-$1,100/head with some to $1,400. Dairy breed heifer calves brought $300-$700/head with some higher. Beef and Beef Cross calves were steady, selling from $700 to $1,600/head. Light and lower quality calves sold up to $60.
