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
Beef production continues to outpace expectations thanks to heavier carcass weights. While year-to-date harvest is 6.3% lower than last year, beef production is just 2.9% lower. As expected, last week’s harvest was light, estimated at 477,000 head, making it 90,700 fewer than the previous week and 62,000 fewer than Memorial Day week last year. There are signs of herd rebuilding in some parts of the country, but it is difficult to say that it is widespread. Fed heifers made up 34%of the harvest total, similar to the past several weeks. Cow harvest year-to-date is 17% less than last year. We are pulling from a smaller cow herd overall, but some analysts are pointing out that part of the decrease may be due to farmers and ranchers holding on to older cows to capture the high value of feeder calves. The supply of market-ready cattle is not expected to increase in the coming months.
Average plant capacity utilization is estimated at 79%. The Cattle on Feed report from two weeks ago said that April placements were 2.6% lower than 2024. While that decrease may not seem significant, it is the smallest April placement number in the past 10 years except for 2020, when the early unknows of COVID-19 were coming into play. Wholesale beef prices have been robust. The Choice beef cutout value gained $9.14 last week to average $359.13. Fed cattle prices were higher in the northern U.S. and steady in the South. The gap between the two regions is widening, with negotiated bids of $230/cwt in the north and $220/cwt in the South.
High Choice And Prime Beef
High Choice and Prime beef breed steers were higher this week with many auction markets reporting record higher prices. Top quality steers and heifers brought selling from $215-$240/cwt with reports of some higher. Choice steers and heifers ranged from $200-$215/cwt. Holstein steers were higher. High grading Holstein steers brought $190-$209/cwt. Lower grading steers brought $160-$190. Silage-fed, under finished or heavy dairy breed steers brought $90-$160/cwt. Dairy x Beef steers were steady and strong, bringing $168-$220 with some as high as $230/cwt. Cows were steady to $1 higher. Most cows brought $110-$139/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 higher, selling from $600-$1,150/head with some heavier, well-managed calves selling to $1,300/head. Dairy breed heifer calves were higher, bringing $300-$900/head with a few higher. Beef and Beef Cross calves were higher, selling from $700-$1,690/head. Light and lower quality calves sold up to $60.
Leave a Reply