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
Packers found themselves in need of cattle and upped their bids in the northern U.S. at the end of last week. Cattle feeders in the southern states pulled the trigger early, accepting steady money. Midwest auction markets reported fed cattle prices $1 higher early in the week, with Holstein steers $1 to $2 higher. Lower live weights and a decrease in the percentage of cattle grading Choice indicates that packers have been pulling cattle ahead.
Last week included a holiday with an estimated harvest of 539,000 head. While that is 108,000 below the previous week and 49,000 below Independence Day week a year ago, it was still 85,000 head more than industry analysts expected. While fed cattle prices are showing resilience, wholesale prices have been coming down somewhat. Last week’s Choice beef cutout value averaged $321.97, a drop of $7.22.
Exports are not keeping pace with 2022’s excellent demand for U.S. beef. May beef exports were 14% lower than last year’s record month but were 4% higher than April. The value of the dollar, the price of U.S. beef, and tight supplies combined to cause the decrease. Exports for January through May are trailing 2022 by 10%. The United States Meat Export Federation is focusing on underutilized cuts even in established markets and are encouraged to see beef variety meats continuing at a strong pace. Beef export value equated to $399.71 per head of fed cattle harvested in May, down 21% from a year ago. The January through May average of $391.66 is down 19%. Exports accounted for 14.7% of total beef production in May.
Cattle Prices
Beef breed fed cattle sold steady to $1 higher compared to last week at Wisconsin and surrounding state auction markets, bringing $145 to $178/cwt. High Choice and Prime steers and heifers brought $178 to $188/cwt. The Holstein steer market was steady to $2 higher, from $126 to $160/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 $125 to $170.
Cows were steady to $1 higher. A bulk of the cows brought $70 to $104/cwt with beef breed, fleshier cows selling to $120/cwt. Doubtful health and thin cows were bringing $70/cwt and down.
Dairy breed bull calves were higher, bringing $100 to $300/cwt with some heavier, well cared for calves selling to $335 and some higher. Beef and Beef Cross calves were steady, selling to $625/cwt.
Hogs
Hog prices were higher again last week. Overall improvement in the pork complex is welcomed in a sector that has seen both farmers and packers operating in the red. There is ongoing discussion about recent higher sow harvest and the implications for future supply. Hog weights continue to come down, with packers capitalizing on higher wholesale prices and producers happy to market hogs lighter given current feed prices.
Last week’s harvest of 1.954 million was 378,000 less than the previous week and 18,000 hogs below the holiday week a year ago. The pork cutout value was up $6.58 last week to average $107.41, helped by higher ham and belly prices.
May pork exports were up 16% from a year ago, the ninth largest on record and the largest since May 2021. Pork variety meat exports set a new value record. Mexico continues to be the largest customer, with the value of the peso keeping pace with the dollar. Pork export value equated to $69.08 per head in May, up 6% from a year ago. The January through May average was $63.39 per head, up 10%. Exports accounted for 32% of total May pork production compared to 28.6% a year ago.
Lamb
Traditional market lambs were called higher again last week. The gross carcass cutout value was $4.27 higher when compared to the previous Friday, ending the week at $512.72.
Harvest was estimated to be 9,000 head less than both the previous week and the same week last year, totaling 24,000 sheep and lambs. The number of lambs in Colorado feedlots has dropped below the five-year average, setting the stage for tighter supplies ahead.
May exports of U.S. lamb muscle cuts was down 32% from a year ago and the lowest volume of 2023. May exports declined to most major destinations but increased to the Bahamas. For January through May, exports remained 9% above last year.
Market lambs sold from $160 to $170/cwt.
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