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
Some country cash trade was reported on Wednesday, but most activity was expected to wait until Friday. Auction markets are reporting fed cattle prices mostly steady. Harvest was lower again last week, totaling 613,000 head. That makes it 6,000 head below the previous week and 35,000 less than last year. Some analysts were speculating this would be the smallest weekly level we will see this summer. However this week’s pace was lower through Thursday. Year-to-date cattle harvest is running 3.9% behind 2022.
While demand remains strong, domestic demand continues to be hampered in the short-term by high temperatures, and weekly export sales have been disappointing. Cooler temperatures for many parts of the country are forecasted. Wholesale prices were showing strength at mid-week, giving hope that retailers are buying to meet Labor Day grilling sales. The Choice beef cutout value was 34 cents lower last week, averaging $302.97 and is still running about $35 higher than this time last year.
According to the Sterling Beef Profit Tracker, for the week ending July 29, cattle feeders saw average profits near $443 per head, about steady with profits the previous week. Pasture conditions remain a large concern for the state’s cow-calf producers. Conditions did improve slightly, according to the latest report, with 32% of pasture in Wisconsin rated good to excellent, up 2% from the previous week.
Cattle Prices
Beef breed fed cattle were mostly steady at Wisconsin and surrounding state auction markets, bringing $150 to $180/cwt. High Choice and Prime steers and heifers brought $180 to $192/cwt. The Holstein steer market was steady to $2 higher from $126 to $165/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 were steady to $2 lower. A bulk of the cows brought $75 to $105/cwt, with fleshier dairy and beef cows selling to $120/cwt, and a few above. Doubtful health and thin cows were bringing $75/cwt and down.
Dairy breed bull calves were lower, bringing $100 to $280/cwt with some heavier, well-managed calves selling to $320. Beef and Beef Cross calves were steady, selling to $650/cwt.
Hogs
Belly prices have been the main force behind higher carcass cutout values in recent weeks. Summer bacon demand is always expected in the pork sector, and this year has been no exception. The pork cutout, while 44 cents higher last week, struggled this week with primal bellies dropping $9.79 on Wednesday, quite possibly signaling processor needs for the rest of the summer have been met. The carcass cutout value averaged $114.68 per cwt last week. Cash hogs were called 60 cents lower.
Farrow-to-finish hog producers saw profits of about $50 per head last week, about $5 per head more than the previous week according to the Sterling Profit Tracker. Pork producers saw profits of $83 per head the same week a year ago.
Last week’s hog harvest was estimated at 2.338 million, making it 54,000 below the previous week and 3,000 head higher than the same week last year. Sow harvest the past two weeks has been 12,000 head higher than last year.
There are differing viewpoints on future hog supply, although the increase in sows heading to market is a good indicator that market hog supply will be lower next year. Exports for the period from July 28 to August 3, 2023 were 22,300 metric tons, up 25% from the previous week and up 3% from the prior four-week average.
Lamb
Traditional lamb prices were called $9 to $10 higher last week. The gross lamb cutout value was $518.13 last Friday, up $2.52 from the previous week. Boxed rack prices have struggled most of the year and have dropped significantly in recent weeks.
The sheep and lamb harvest estimate of 32,000 was equal to both the previous week and the same week last year. If seasonal trends hold, harvest totals should decline in the coming weeks.
If the lighter dressed weights seen this year continue, the decrease in production should support higher live market lamb prices. Market lambs were mixed to mostly higher, from $155 to $195/cwt, with a few to $215/cwt.
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