Wisconsin cattle prices held steady this week, while hog and lamb markets trended lower.
USDA & Export Reports
Last week’s Cattle on Feed report proved bullish overall. Feedlots with over 1,000 head held 11.16 million cattle. While this marks a 0.7% increase from last September, it fell short of pre-report estimates. It still stands as the fifth-largest on-feed number since reporting began.
Placements hit a record low of 1.62 million head, dropping 9% below last August and missing expectations entirely. Marketings also set a record low at 1.52 million head, a 3% year-over-year decline. The challenge of placements once again outpaced marketings.
The Choice beef cutout value dropped $3.91 last week to average $374.26, but began climbing again early this week. Harvest totals also missed expectations. The USDA reported a harvest of 529,000 head—24,000 more than the holiday-shortened Labor Day week, but 30,000 fewer than last year. The wholesale price of 90% lean trim continues to fall, sitting $10/cwt lower than late August. This drop has heavily pressured market cow prices.
On the export front, July U.S. beef exports climbed 6% year-over-year in value, while volume remained steady. According to the U.S. Meat Export Federation (USMEF), beef export value equaled $421.07 per head of fed cattle harvested in July—a 14% jump from a year ago. The January-July average reached $430.25 per head, up 7%.
Beef
Fed cattle prices held mostly steady this week. Top-quality beef steers and heifers brought $210 to $222/cwt, while mixed Choice and Select steers and heifers ranged from $195 to $210/cwt. High-grading Holstein steers remained steady at $190 to $212/cwt, with lower-grading steers bringing $182 to $190/cwt. Silage-fed and under-finished steers sold for $95 to $175/cwt. Dairy Beef cross steers held steady at $200 to $220/cwt.
Cow prices dropped sharply. Most brought $96 to $125/cwt, though a few reached the $140s. Lower-yielding cows brought $40 to $96/cwt, and doubtful health or thin cows sold for up to $40/cwt. Dairy breed bull calves trended higher, selling for $500 to $1,500/head. Dairy breed heifer calves brought $200 to $800/head. Beef and Beef Cross calves also rose, bringing $600 to $1,600/head, while light and lower-quality calves sold for up to $60. Fed lambs over 100 pounds brought $220 to $300/cwt, and light lambs sold for $260 to $290/cwt.
Hogs & Pork
Hog markets continue to slide, though futures rallied ahead of Thursday’s Hogs and Pigs report. The pork cutout dropped $4.14 last week to average $87.63. Belly prices fell significantly, but ham primals gained ground. Last week’s estimated harvest reached 2.490 million head. This is 221,000 more than the holiday-shortened week, but 102,000 fewer than the same week last year. Forty-pound feeder pigs averaged $47.64/head, while early-weaned pigs averaged $32.82/head.
July pork exports totaled 224,305 metric tons. This sits 6% lower than a year ago, though year-to-date totals remain higher. Shipments to Japan, Central America, Colombia, and Canada increased, offsetting lower exports to Mexico, China, South Korea, Oceania, and the ASEAN region. July pork export value equaled $62.53 per head harvested. This is $3 higher than June, but down 6% from last year. January-July export value equated to $66.06 per head, up 1% year-over-year. Exports accounted for 28.4% of total pork production and 24.8% of muscle cuts.
Sheep & Lambs
Light-weight market lambs dropped $6 to $10/cwt last week, while heavy lambs fell $1/cwt. The lamb cutout value rose $3.20 from the previous Friday to hit $684.47. Processors harvested an estimated 36,000 sheep and lambs last week—3,000 more than the previous week and dead even with last year. The industry is entering the time of year when harvests typically increase and prices trend higher.
July U.S. lamb exports totaled 206 metric tons, a 14% year-over-year decline. Despite a 7% drop in volume from January through July, lamb export value actually increased 4% to just over $10 million. Strong demand from the Bahamas, Netherlands Antilles, and Leeward-Windward Islands drove this value increase.
The weekly livestock update is 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.
