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.
Cash cattle ended last week $1-3 lower and were steady with those prices to open this week. Cattle feeders had initially turned down lower bids. However they were motivated to sell as another wave of heat moved across the country.
The number of cattle in feedlots of over 1,000 head totaled 11 million head on August 1, according to the latest USDA Cattle on Feed Report. That puts the inventory 2.3% below a year ago. Net placements for July totaled 1.55 million head, 8% less than the same month last year. The placement number was below expectations, but the report was still considered only slightly bullish. The past two reports showed placements exceeding the prior year, so a sharp decline was expected at some point. The report foretells what we already know – fed cattle supplies will be tight during the fourth quarter of this year and the first quarter of 2024.
The slower harvest pace continues, although last week’s total of 616,000 head was 13,000 more than the previous week. However this is still 48,000 head below last year. The smaller totals helped spur on wholesale beef prices with the Choice carcass cutout value averaging 310.40 last week. That’s an increase of $7.99.
Beef breed fed cattle were mixed to mostly lower to open the week, but firmed by mid-week. Wisconsin and surrounding state auction markets reported prices of $150 to $182/cwt.
High Choice and Prime steers and heifers brought $182 to $194/cwt. The Holstein steer market was mostly steady from $126 to $166/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 $174/cwt.
Cows were lower. A bulk of the cows brought $65 to $99/cwt. Fleshier dairy and beef cows selling to $115/cwt. and a few above. Doubtful health and thin cows were bringing $65/cwt and down.
Dairy breed bull calves steady to lower bringing $100 to $250/cwt with some heavier, well-managed calves selling to $300. Beef and Beef Cross calves were steady, selling to $600/cwt.
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