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
Markets hit the pause button for U.S. Independence Day last Thursday and were slow when action resumed Friday. Last week’s cattle harvest was estimated at 517,000 head, 92,000 less than the previous week and 19,000 less than the holiday week last year. Many analysts had expected harvest to be even lower than the estimate posted last Friday. Cash cattle were called 50 cents lower.
The five-state area weighted average was $195.37, compared to $180.70 for the same week last year. There were reports of $200/cwt bids in the northern U.S. The Choice beef cutout remained strong, gaining $6.25 last week to average $329.96. A year ago, the cutout value was $321.97. Domestic demand is holding, although we would expect it to decrease seasonally the rest of the summer.
May beef exports totaled 110,133 metric tons, down 5% from a year ago but the second largest of 2024. Beef export value reached $902.4 million in May, 3% above last year and the highest in 11 months. Export value equated to $410.94 per head of fed cattle harvested in May, up 3% from a year ago. The January–May per-head average was $410.40, up 5%. Exports accounted for 13.8% of total May beef production, and 11.5% for muscle cuts only.
Cattle Prices
High Choice and Prime beef breed steers were mostly steady, bringing $183-$195/cwt with some packages reported above $200/cwt. Choice steers and heifers ranged from $170-$183/cwt. with mixed grading and those likely to grade Select bringing $152-$170/cwt.
Holstein steers were steady. High grading steers brought $164-$177/cwt with some fancy steers to $184/cwt. Lower grading steers brought $130-$164. Silage-fed, under-finished or heavy dairy breed steers brought $75 to $130/cwt. Dairy x Beef steers were higher, bringing $140-$190/cwt.
Cows were higher. Most of the cows brought $107-$128/cwt with some to the high $140s/cwt. Lower yielding cows brought $75-$106, with doubtful health and thin cows bringing up to $75/cwt.
Dairy breed bull calves were fully steady from $200-$400/head with some heavier, well-managed calves selling to $700. Beef and Beef Cross calves were steady, selling to $950 with some up to $1,000/head.
Hogs
Cash hogs were modestly higher. The pork cutout averaged $94.57 last week, a drop of $1.72. The cutout was $107.41 a year ago. The weekly harvest estimate of 2.045 million hogs was 376,000 below the previous week and 91,000 head more than Independence Day week last year. Both harvest and pork production are just over 1% higher year-to-date and will continue to be higher the remainder of 2024. Increasing domestic demand has proven challenging for the pork sector.
At the Wall Street Journal Global Food Forum held in late June, McDonald’s President Joe Erlinger hinted the fast-food chain would be bringing back the McRib. Erlinger also said McDonald’s has no plans to continue promoting the McPlant – a meatless burger – due to poor performance.
May pork exports totaled 251,447 metric tons, down 4% from a year ago. The value of $715.8 million was down 2%. Through the first five months of the year, exports were still up 6%, while export value was 7% above last year’s record pace. May pork exports equated to $67.64 per head harvested, down 2% from a year ago. The January–May average was still up 5% to $66.54. Exports accounted for 30.7% of total May pork production and 26.2% for muscle cuts only.
Lamb
Market lamb prices were steady to $20/cwt higher last week. The cutout was lower, however, at $465.58 compared to $471.34 the previous Friday. It was estimated 28,000 sheep and lambs were harvested during the holiday week, making it 7,000 head less than the week prior and equal to last year’s July 4th holiday week.
May exports of U.S. lamb totaled 251 metric tons, up 78% from the low year-ago volume, while export value was up 66% to $1.3 million. For January through May, lamb exports increased 11% from a year ago, climbing 25%.
