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 cattle market turned higher last week with the five-area weekly weighted steer average up $2.75. Analysts predicted tight availability of market-ready cattle in Iowa and Nebraska this week. The prospect of higher bids shook cattle loose, especially in the south with trade activity beginning early in the week. August live cattle futures gained $6.00 and hit an 11-week high last week, attempting to align more closely with the cash market.
Last week’s harvest estimate of 615,000 head was 1,000 more than the previous week and 21,000 less than last year. Year-to-date cattle harvest is running 4.4% below last year. Cattle on Feed and Monthly Slaughter reports are expected to continue painting a picture of tightening fed cattle supplies and lower non-fed harvest.
The tight supply of cows and bulls has caused 90% lean beef trimmings to hit record highs. Non-fed cattle prices have also hit record highs.
The Choice beef cutout averaged $318.29 last week, a gain of $2.24. A short time ago it seemed a stretch to think the cutout could take out the $322 level of resistance but now that is a possibility. There are headwinds, however. Memorial Day and Father’s Day are two of the year’s largest grilling holidays. With those days behind us, concerns persist that summer demand will not live up to last year. The average retail price of beef in May was $8.11/pound, 4 cents lower than April, and 3 cents higher than this time last year.
High Choice and Prime beef breed steers and heifers sold steady to $2 higher this week, bringing $177- $190/cwt with some packages higher. Choice steers and heifers ranged from $167-$177/cwt. with mixed grading and those likely to grade Select bringing $152-$167/cwt. Holstein steers were steady to higher. High grading steers brought $162-$175/cwt with reports of some packages selling higher. Lower grading steers brought $130-$162. Silage-fed, under finished or heavy dairy breed steers brought $75- $130/cwt. Dairy x Beef steers were higher, bringing $130-$182/cwt.
Cows were steady to $1 higher. The bulk of the cows brought $105-$130/cwt with some to the high $140s/cwt. Doubtful health and thin cows were bringing $105/cwt and down.
Dairy breed bull calves were fully steady from $200-$400/head with some heavier, well-managed calves selling to $750. Beef and Beef Cross calves were steady, selling to $980 with some to $1,000/head.
