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 increase in wholesale prices was the major news this week in the cattle sector. Retailers’ last-minute Labor Day needs were likely one cause with low weekly harvest totals being another. The Choice beef cutout value was $400.57 last Friday compared to $378.44 the previous week. This increase is unprecedented and begs the question of what beef demand will do after the long holiday weekend. Higher prices have not deterred Americans from buying beef so far this summer. July beef sales were 13.2% higher in dollar value and 3.6% higher in pounds compared to June. The cattle market was volatile last week; live cattle futures prices made large moves both higher and lower, making it difficult for packers and sellers alike to find the market. Negotiated sales were mostly steady, with some instances of bids $2/cwt higher in the north and only light trade in the South.
The estimated weekly harvest of 530,000 head was not only the lowest non-holiday total of the year, but also of the past 10 years. It was 6,000 fewer than the previous week and 75,000 fewer than the same week a year ago. Beef production last week was estimated at 4.576 million pounds compared to 5.148 a year ago. Year-to-date harvest is 6.8% lower than last year. Beef production in 2025 is expected to be one billion pounds less than 2024 according to the latest World Agricultural Supply and Demand (WASDE) report. The report raised its forecasted average price for beef breed steers $6/cwt to $227.06 for 2025 and raised the 2026 estimate from $229 to $244/cwt. Average trade estimates for Friday’s Cattle on Feed report are for feedlot inventories to be about 2% lower than last year with placements nearly 9% lower.
Top Quality Steers And Heifers
Top quality steers and heifers were mostly steady, bringing $222-$244/cwt. Choice steers and heifers ranged from $208 to $221/cwt. Holstein steers were steady to $2 lower. High grading Holstein steers brought $193-$220/cwt. Lower grading steers brought $165-$192/cwt. Silage-fed, under-finished or heavy dairy breed steers brought $92-$165/cwt. Dairy x Beef steers were steady, bringing $177-$230 with some higher. Cows were lower. Most cows brought $118-$144/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 $1,300. Dairy breed heifer calves brought $300-$700/head with some higher. Beef and Beef Cross calves were steady, selling from $700 to $1,550/head. Light and lower quality calves sold up to $60.
