Last week’s Cattle on Feed report was considered neutral as the data closely matched pre-report estimates. The number of cattle in feedlots of over 1,000 head totaled 11.4 million head on May 1, a decrease of 1.8% compared to a year ago. Placements were 2.6% lower at 1.61 million head. April placements were higher than last year in some key states including Iowa, Colorado, Minnesota, and Nebraska, but were notably lower in others like Texas and South Dakota. Tightening feeder cattle supplies and heavier fed cattle end weights have changed the feedlot dynamic somewhat, with cattle entering feedlots sooner and remaining on feed longer.
The Choice beef cutout value averaged $359.13 last week, a gain of $9.14. Beef demand heading into summer is healthy and strong. Beef is 25% of protein consumed per person in the U.S. but beats all other proteins in dollars spent per consumer at 50%. Negotiated cattle prices were higher last week with packers actively bidding on cattle for deferred delivery. USDA estimates 570,000 head of cattle were harvested last week, 4,000 more than the previous week and 32,000 fewer than a year ago. This week’s total will be the lowest in several months, with some predicting harvest numbers as low as the spring of 2020.
High Choice and Prime Beef
High Choice and Prime beef breed steers were steady to $2 higher this week, selling from $208-$230/cwt with reports of some higher. Choice steers and heifers ranged from $198-$208/cwt. Holstein steers were higher. High grading Holstein steers brought $187-$203/cwt. Steers with an overnight stand brought up to $206/cwt with reports of some selling higher. Lower grading steers brought $157-$187. Silage-fed, under-finished or heavy dairy breed steers brought $88-$157/cwt. Dairy x Beef steers were steady and strong, bringing $165-$214 with some as high as $220/cwt.
Cows were steady. Most cows brought $110-$138/cwt with some to the low $150s. Lower yielding cows brought $68-$110/cwt. Doubtful health and thin cows brought up to $68/cwt. Dairy breed bull calves were lower, selling from $600-$1,050/head with some heavier, well-managed calves selling to $1,200/head. Dairy breed heifer calves were lower, bringing $200-$550/head with a few to $800. Beef and Beef Cross calves were lower, selling from $600- $1,500/head. Light and lower quality calves sold up to $60.
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