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 were higher last week even as cutout values continue to decline. The Choice cutout value averaged $309.95 last week, a drop of $12.02. Fed cattle traded in a wide range at auction markets this week as packers sought out heavier market-ready cattle more likely to grade Choice. Private treaty sales were light through mid-week at mostly steady money.
The retail price for beef increased to $8.14/pound in June. That is 6.2% higher than the January average price of $7.57. Ground beef averaged $5.03/pound in June compared to $4.79 in January. The USDA raised its 2024 projected fed steer price by $3/cwt in its latest World Supply and Demand Estimates (WASDE) report. That would be a 12% increase over 2023.
The estimated harvest last week was 633,000 head, an increase of 94,000 compared to the previous week, which included a holiday, and 40,000 head less than the same week last year. Heifer harvest has come down somewhat and fewer beef cows are heading to market when compared to last year, although both numbers remain high enough to dispel any thoughts of herd rebuilding taking place.
Heat and humidity have been hurting feedlot gains in the Southern Plains. Feeder cattle demand has been excellent, although continued dry weather in the Corn Belt and uncertainty surrounding Ukraine grain shipments have stalled gains in Feeder Cattle futures prices.
Cattle Prices
Beef breed fed cattle were mixed to mostly steady at Wisconsin and surrounding state auction markets, bringing $145 to $178/cwt. High Choice and Prime steers and heifers brought $178 to $186/cwt. The Holstein steer market was fully steady to $1 higher, from $126 to $161/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 $126 to $172.
Cows sold lower than last week. A bulk of the cows brought $66 to $102/cwt with beef breed, fleshier cows selling to $115/cwt. Doubtful health and thin cows were bringing $66/cwt and down.
Dairy breed bull calves were mostly steady bringing $100 to $300/cwt with some heavier, well-managed calves selling to $350. Beef and Beef Cross calves were steady, selling to $600/cwt. Market lambs were mostly higher from $160 to $180/cwt, with a few to $200/cwt.
Hogs
Cash hogs prices continue to push higher. The pork carcass cutout value gained $4.00, to average $111.41 last week. Belly primal prices were especially strong, signaling that BLT season is here. The cutout value showed weakness this week, but it appears pork demand is strong enough for packers to continue seeking hogs. Demand will need to hold for current price levels to be maintained, however.
Enthusiasm in Lean Hog futures contracts at the Chicago Mercantile Exchange has been dampened by higher prices in the grain complex and geopolitical concerns. The USDA increased its barrow and gilt price projection by $1.20 for 2023 and the 2024 average price by $3 in the latest WASDE report.
The average pork retail price in June was $4.68/pound, down 5% from year-ago levels. The retail bacon price was $6.22/pound, a decline of 16% from 2022.
Harvest numbers were back to pre-holiday levels with last week’s estimate of 2.340 million hogs, up 386,000 from the previous week and 85,000 more than the same week last year.
Lamb
All classes of market lambs were firm to higher nationally last week. Light market lamb prices rebounded after nearly a month of moving lower.
Colorado feedlot inventories on July 1 totaled 48,685, less than half of the previous year. Sheep and lamb harvest continues to outpace 2022.
Last week’s estimate of 32,000 was 8,000 head higher than the previous week and 1,000 more than the same week last year. The cutout value was steady with the previous Friday at $512.74.
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