Ed. Note: Media outlets planning to reprint the market update should include the following text at the beginning: Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Beef
The past 10 days have brought increased volatility to the cattle complex. Cash trade ended the week $1.50 lower. Prices in the northern U.S. were hardest hit with bids $2-$3/cwt lower. Both live cattle and feeder cattle contracts were sharply lower to end last week. Feedlot operators started this week holding out for higher bids, causing most marketing activity to be pushed to Thursday and Friday. The Choice beef cutout averaged $316.41 last week, and while that was $1.92 higher, the gain was erased Monday of this week.
Last week’s harvest estimate was higher than expected at 602,000 head, making it 11,000 more than the previous week and 15,000 less than the same week last year. Talk of the economy and the upcoming U.S. presidential election have dominated cattle market conversations. Meat is often brought into discussions regarding food inflation. It is true heavier carcass weights have kept beef production higher than projected at 1.3% less than 2023 year-to-date. There are fewer cattle with harvest lagging 4.2% behind last year. Nonfed cattle harvest continues to drop, making lean trim a premium item. The average retail price of beef in July was $8.43/pound, 31 cents higher than June and 1.5% higher than a year ago. Increases in the price of ground beef continue to outpace those for steaks.
High Choice and Prime Beef
High Choice and Prime beef breed steers were mostly $1-$2 lower, bringing $180-$188/cwt with some packages reported to $196 and extreme tops at $198/cwt. Choice steers and heifers ranged from $167-$180/cwt. Holstein steers were steady to weak. High grading steers brought $163-$175/cwt with some fancy steers to $178/cwt. Lower grading steers brought $130-$163. Silage fed, under finished or heavy dairy breed steers brought $75-$130/cwt. Dairy x Beef steers were $1-$2 lower, bringing $140-$186/cwt. Cows were lower. Most of the cows brought $111-$128/cwt with some to the low $140s/cwt. Lower yielding cows brought $72-$111 with doubtful health and thin cows bringing up to $72/cwt. Dairy breed bull calves were lower, selling from $200-$400/head with some heavier, well-managed calves selling to $650/head. Beef and Beef Cross calves were lower, selling to $900/head with a few to $925/head.
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