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.
Cattle
Cash cattle prices continued to move lower last week on moderate trade. Packers were not aggressive coming out of the holiday as few private treaty sales were reported before the end of this week. Rallies are uncommon during the dog days of summer, so many producers were hoping for bids steady at best. Show lists are said to be larger this week, making it harder to expect higher money.
The Choice beef cutout was $6.29 lower than the previous week, averaging $329.19. Even with the recent downturn, cutout prices continue to outpace last year. The estimated harvest last week was 644,000 head, making it 5,000 less than the previous week and 3,000 more than the same week last year.
The USDA’s Crop Progress and Acreage report indicated larger than expected corn acres. This initially underpinned Live Cattle futures and rallied Feeder Cattle contracts, but both failed to hold those gains during the first post-holiday session. Feeder cattle contracts especially saw a large drop. Wisconsin pasture conditions continue to erode, dropping another two points last week with 36% now rated Good to Excellent. Surrounding states are struggling as well, with Illinois pasture conditions rated just 11% Good to Excellent with Michigan at 24%, Iowa at 24%, and Minnesota at 47%. Nationally, 31% of pasture and range is rated Good to Excellent.
Cattle Prices
Beef breed fed cattle sold steady last week at Wisconsin and surrounding state auction markets, bringing $145 to $176/cwt. High Choice and Prime steers and heifers brought $176 to $182, with a few reports of some to $187/cwt. The Holstein steer market was steady from $125 to $158/cwt, with a few higher. Silage fed, under finished, or heavy dairy breed steers brought $75 to $125/cwt. Dairy x Beef steers were bringing $120 to $168.
Cows were mixed. A bulk of the cows brought $68 to $103/cwt with beef breed, fleshier cows selling to $115 and above. Doubtful health and thin cows were bringing $68/cwt and down.
Dairy breed bull calves were mostly lower, bringing $100 to $250/cwt with some heavier, well cared for calves selling to $325. Beef and Beef Cross calves were steady, selling to $600/cwt.
Hogs
Anecdotal information and pre-report estimates did not match last week’s Quarterly Hogs and Pigs report data. The June 1 breeding herd came in at 99.6% of a year ago, higher than many analysts expected. The number does not point to the contraction many say is occurring. Pigs per litter were also higher than early guesses at over 3% larger than a year ago. The report would indicate hog supply will remain steady for the next six months. Farrowing intentions were down 4%. If the intention number holds, supply would decrease in early 2024.
The hog sector is finding firming footing, even in light of the report. Cash hogs were $2.00 higher this week with the carcass cutout value breaking through a major level of resistance to average $100.83 for a gain of $4.71. A rush to get pork to California before the Prop 12 deadline for product already in the pipeline may be responsible for the market strength. Nearby Lean Hog futures contracts showed strength last week and have carried the momentum into post-holiday trading based on the higher cash and wholesale prices. Hog harvest was estimated to be 2.332 million head, down 40,000 from the previous week and up 48,000 on the year. The USDA Crop Acreage report brought mixed news for pork producers. While the report showed larger than expected corn acres, soybeans saw a large drop from March planting expectations.
Lambs
Cash lambs were called higher again last week, showing steady gains over the past month. Lighter lambs are still showing weakness, however. The carcass cutout was weaker, dropping $2.45 compared to the previous Friday to end the week at $508.45. Harvest continues at an impressive pace with last week’s estimate of 33,000 head. Sheep and lamb harvest is running 5.3% ahead of 2022 year-to-date. Market lambs were lightly tested selling to $170/cwt.
Leave a Reply