The following report was prepared and written by Jeff Swenson, DATCP’s livestock and meat specialist. This report draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA reports.
Beef production in July was 3 percent below last year, according to the latest USDA livestock slaughter report. The number of head harvested was 2 percent lower, and the average live weight decreased by eight pounds compared to a year ago. Cows and heifers harvested in July made up over 51 percent of the total. Steers harvested was 8.2 percent below last July, while heifers were 4.8 percent higher and beef cow harvest was 10.6 percent higher. Dairy cow harvest was 7 percent lower than July 2021.
Recent rain in areas most impacted by drought in recent weeks has slowed the number of beef cows heading to market in August, and we could see numbers go against typical season trends in the fall when cow harvest usually increases. Last week’s estimated harvest was 678,000 head, up 17,000 head from the previous week and 25,000 head higher than the same week a year ago.
The Choice beef cutout ended last week $1.20 lower at $262.76. While the cutout is over $80 lower than this time last year, fed steer prices are $18.50/cwt higher. According to the Sterling Profit Tracker, the cost of feeding a steer to finished weight for cattle marketed last week was 25 percent higher than a year ago. The cost to finish steers placed on feed last week is projected to be 31 percent higher.
Pressure in the fed cattle market continued into this week.
Choice beef breed steers and heifers at Wisconsin and surrounding state auction markets were steady to $2 lower. High-yielding, high-grading cattle brought $123 to $143/cwt. Some markets reported packages of steers and heifers from $144 to $148/cwt and some exceptional groups above. Choice Holstein steers were steady to weak at $107 to $134/cwt with high grading Holstein steers bringing $134 to $139/cwt. Silage fed, under finished, or heavy dairy breed steers brought $75 to $107/cwt. Dairy x beef steers were $2 lower, bringing $105 to $144/cwt. Cows were weak with the bulk selling $2 to $5 lower from $50 to $78/cwt with some selling to the high $80’s and reports of some beef types selling higher. Doubtful health and thin cows were bringing $50/cwt and down. Dairy breed bull calves were lower, bringing $40 to $125/cwt with heavier, well cared for calves up to $140/cwt. Beef and beef cross calves were mostly steady, selling to $330/head.
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