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.
The latest USDA Cattle on Feed report was considered slightly bearish. The number of cattle in feedlots of 1,000 or more was .03% higher than this time last year. Placements last month were nearly 6% higher than a year ago.
Last July brought a low number of cattle placed into feedlots, so traders were expecting a larger number from this report. The 1.7 million head placed was still higher than the upper end of pre-report trade guesses.
USDA also released a Monthly Slaughter report last week. July beef production totaled 2.3 billion pounds – 8.5% more than last year. There were two more weekdays in July this year than in 2023 and that, coupled with heavier carcass weights, contributed to the increase. Beef cow harvest was 11.3% lower than July last year and is running 15% less than last year.
The cattle market was markedly lower last week, with fed cattle prices decreasing by $3.40/cwt. Early cash bids this week were steady to 50 cents lower. The estimated cattle harvest last week was 608,000 head, which was 6,000 more than the previous week and 18,000 head fewer than the same week last year. Harvest totals this week will be higher ahead of the Labor Day holiday shortened week.
The Choice beef cutout value was 57 cents lower, averaging $315.83 last week and was moving lower this week.
High Choice and Prime beef breed steers were mostly $1-$2 lower, bringing $180-$186/cwt with some packages reported to $192. Choice steers and heifers ranged from $165-$180/cwt. Holstein steers were steady to weak. High grading steers brought $163-$175/cwt with some fancy steers to $178/cwt. Lower grading steers brought $130-$163. Silage fed, under finished, or heavy dairy breed steers brought $75-$130/cwt. Dairy x Beef steers were $1-$2 lower, bringing $138-$184/cwt.
Cows were lower. Most of the cows brought $90-$125/cwt with some to the high $130s/cwt. Lower yielding cows brought $75-$90, with doubtful health and thin cows bringing up to $75/cwt.
Dairy breed bull calves were lower, selling from $200-$400/head with some heavier, well-managed calves selling to $700/head. Beef and Beef Cross calves were lower, selling to $900/head with a few to $950/head.
