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
Cattle
The latest Cattle on Feed report showed April 1 inventory 1.6% lower than a year ago at 11.64 million head. March placements came in higher than pre-report estimates at 1.84 million head, 5% above last April. These higher March placements followed February placements that were hampered by extreme winter weather in much of cow-calf country. The next 30 to 40 days represent the annual peak for beef demand. Concern continues regarding the appetite for beef at current prices, although consumers continue to seek it out as a preferred center-of-the-plate protein. It is easy to point to tighter cattle supplies as justification for cash prices to move higher during grilling season. Year-to-date harvest continues 5% lower than last year, but beef production is down only slightly – the result of record high cattle weights. A beef supply like last year’s could limit the potential for prices to move higher, although the market continues to surprise many. This Cattle on Feed report included a breakdown of steers and heifers in feedlots. Heifers made up 37.6% of total on-feed inventory, 4% lower than this time last year. It is too early to tell if this is a signal that herd rebuilding is underway. Beef cow harvest is now in line with a year ago, but dairy cow harvest remains lower. Lower non-fed harvest has kept prices for lean trim elevated. Estimated harvest last week was 576,000 head. While that was 12,000 more than the previous week, it was 42,000 fewer than a year ago. The Choice beef cutout was $2.99 lower last week, averaging $333.80.
High Choice and Prime Beef
High Choice and Prime beef breed steers were $2-$3 higher, selling from $196-$216/cwt with some selling to $218/cwt. Choice steers and heifers ranged from $186-$195/cwt. Holstein steers were $1 higher. High grading Holstein steers brought $180-$194, with steers with an overnight stand selling up to $199/cwt. Lower grading steers brought $155-$179. Silage-fed, under-finished or heavy dairy breed steers brought $83-$154/cwt. Dairy x Beef steers were steady, bringing $155-$200 with some to $212/cwt. Cows were fully steady. Most cows brought $114-$134/cwt with some to the high $140s. Lower yielding cows brought $70-$114/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were steady, selling from $400-$600/head with some heavier, well-managed calves selling to $925/head. Dairy breed heifer calves were higher, bringing $200-$750/head with a few to $1,000. Beef and Beef Cross calves were steady, selling from $700-$1,000/head with a few to $1,350. Light and lower quality calves sold up to $50.
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