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
Negotiated trade was slow to develop last week and was $4-$6/cwt lower. Asking prices were higher to begin this week and an increase in boxed beef prices is giving producers leverage. The Choice beef cutout was $9.99 higher last week, averaging $373.67. Additional gains early this week have helped erase the downturn in prices seen in July. Strength in wholesale beef prices is supportive to the cash trade, but there has been an increasing interest by news outlets regarding rising retail prices. Muscle cut prices have been rising slowly, but the largest increases have been seen in ground beef. The average price of ground beef in June was $6.12/pound according to the U.S. Bureau of Labor Statistics. That compares to $5.98 in May and $5.47 a year ago. Given Americans’ appetite for ground beef and the tightening supply of lean trim, prices will likely continue to rise. Last week’s estimated harvest of 536,000 head was 1,000 more than the previous week and 52,000 fewer than a year ago. Beef exports in June were 15% lower than a year ago, which was the lowest volume in five years. Volume has been impacted by a lack of purchases by China, lower supplies, and high U.S. beef prices compared to other countries that sell in the world market. Beef exports equated to $392.72/ head of fed cattle harvested in June, 14% less than a year ago.
High Grade Cattle
Top quality steers and heifers were mixed but mostly steady, bringing $222-$244/cwt. Choice steers and heifers ranged from $208 to $221/cwt. Holstein steers were steady. High grading Holstein steers brought $195-$222/cwt. Lower grading steers brought $165-$194/cwt. Silage-fed, under-finished or heavy dairy breed steers brought $92-$165/cwt. Dairy x Beef steers were steady, bringing $175-$227 with some higher. Cows were fully steady. Most cows brought $120-$150/cwt with some to the low $160s. Lower yielding cows brought $70-$120/cwt. Doubtful health and thin cows brought up to $70/cwt. Dairy breed bull calves were higher, selling from $700-$1,100/head with some to $1,400. Dairy breed heifer calves brought $300-$700/head with some higher. Beef and Beef Cross calves were steady, selling from $700 to $1,600/head. Light and lower quality calves sold up to $60.
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