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. Edited by Mid-West Farm Report.
The USDA released two reports this week — Monthly Slaughter and Cattle on Feed. Cow harvest has been drawing the most attention from the slaughter reports this year. Ag Economist Derrell Peel from Oklahoma State University wrote that non-fed (cows and bulls) beef production is down 6.1 percent so far this year.
Meanwhile, dairy cow harvest has seen a 4.4 percent increase through September, while bull and beef cow harvest has decreased. The number of milk cows on farms in the U.S. in August was 9.39 million head, 16,000 head less than August 2022, but level with July 2023.
The decrease in non-fed harvest has led to an increase in the price of 90% lean beef trimmings. In turn, that’s brought an increase in ground beef prices and higher input costs for sausage production. The 90% lean price has increase by $61.14/cwt since January. Wholesale ground beef prices are now above the previous high — the spike seen in May of 2020. The retail beef price averaged $8.18/pound in September, up 7.6 percent from last year.
The Choice beef cutout value is on the rise, with an average last week of $301.35, an increase of $1.42.
Last week’s harvest estimate was 617,000 head, 11,000 less than the previous week and 45,000 below a year ago. There are fewer fed cattle available, but the slower harvest pace has increased live and carcass weights in recent weeks.
Fed cattle prices were steady to lower this week. High Choice and Prime beef breed steers and heifers brought $179 to $186/cwt with highs of $188/cwt. Choice steers and heifers ranged from $173 to $179/cwt. with mixed grading and those likely to grade Select bringing $158 to $172/cwt. Holstein steers were steady to lower, bringing $154 to $161/cwt with some lots to $164. Lower grading steers brought $130 to $155. Silage-fed, under-finished, or heavy dairy breed steers brought $75 to $130/cwt. Dairy x Beef steers were bringing $126 to $172 with a few to 180/cwt.
Cows were mixed with a bulk of the cows brought $67 to $99/cwt with some fleshier dairy and beef cows selling to $115/cwt with reports of individuals selling higher. Doubtful health and thin cows were bringing $67/cwt and down.
Dairy breed bull calves were mostly steady, bringing $100 to $300/cwt with some heavier, well-managed calves selling to $450. Beef and Beef Cross calves were higher, selling up to $780/cwt and a few to higher.