Jeff Swenson, DATCP Livestock and Meat Specialist prepared and wrote the following report . This 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.
Packers were active early this week rather than waiting until Thursday and Friday to increase their bids. There were reports that bids of $300/cwt on a dressed basis and $191/cwt live were being turned down by feedlot operators in the northern U.S.
The cash cattle market is experiencing wide price ranges and Live Cattle futures are seeing choppy trade with prices moving quickly. Decreasing cow harvest and tightening supplies of fed cattle are making it difficult for packers to fill production schedules. The highest prices being quoted for fed cattle is reserved for heavier cattle likely to grade Choice or above.
The Choice beef carcass cutout value averaged $306.79 last week, and prices continued to push higher this week. The higher wholesale prices will force retailers to raise prices. The holiday-shortened week saw an estimated harvest of 573,000 cattle, making it 52,000 head less than the previous week and 35,000 less than the same week last year.
It was World Pork Expo week in Des Moines, IA. The National Pork Producers Council (NPPC) stressed their focus on profitability, the Farm Bill, and labor at the event. California’s Proposition 12 dominated conversations as well. Pork producers will struggle with profitability the rest of 2023 but are hoping fewer hogs in 2024 will bring higher prices.
The Sterling Profit tracker notes that a year ago, farrow-to-finish producers were realizing an $82 per head profit. This week’s profit is calculated at $1.50 per head. It is estimated 2.033 million hogs were harvested last week, 333,000 less than the previous week and 11,000 less than last year.
The lean hog carcass cutout value was higher last week, averaging $84.31. Pork exports bounced back somewhat according to the latest report, with 25,500 metric tons sold to foreign buyers. The total was 13% higher than the previous week but 11% lower than the four-week average. Pork remains pitted against chicken and turkey for consumer demand domestically.
Wholesale lamb prices dropped last week with the carcass value falling to $508.43 Friday. Cash market lambs were called steady to $10/cwt higher, however. Retail activity was reported sharply higher. Lamb features offered more ad space for Loin Chops and Ground Lamb. Last week’s holiday-shortened sheep and lamb harvest was estimated at 29,000 head, 4,000 less than the previous week and 2,000 head higher than last year.
Fed cattle were higher this week. Beef breed fed cattle sold sharply higher from $146 to $180/cwt. Groups of high Choice and Prime steers and heifers sold from $180 to $187 with some packages higher. The Holstein steer market was steady to higher, ranging from $125 to $157/cwt, with the top end bringing $157 to $159 and some higher.
Silage fed, under finished, or heavy dairy breed steers brought $75 to $125/cwt. Dairy x Beef steers were bringing $120 to $170. Cows were mostly steady. A bulk of the cows brought $65 to $105/cwt, with fleshier cows selling to $112 and above. Doubtful health and thin cows were bringing $65/cwt and down. Dairy breed bull calves were steady, bringing $100 to $250/cwt with some heavier, well cared for calves selling to $350.
Beef and Beef Cross calves were selling to $550/cwt. Market lambs were lightly tested, bringing $125 to $166/cwt. Light lambs were higher and sold to $240/cwt.
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