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
Packer margins remain in the red as cash cattle prices have been steady and wholesale beef prices work lower. Feedlots are beginning to deal with negative margins as well, based on the price paid for feeder cattle now reaching market weights. This has widened the gap between offers and asking prices. The Choice beef cutout was $2.60 lower last week, averaging $366.11. Packers are counting on spring bringing a boost to muscle cut demand. Retail beef prices in January averaged $9.47/pound. That was 8.5 cents lower than the record high average seen in December. Last week’s estimated harvest of 541,000 head was 5,000 more than the previous week and 21,000 fewer than last year. Fed steers made up 49.3% of that total and heifers 32.8%. Cow marketing remains slow, making up just 16.9% of all cattle harvested last week.
USDA released a World Agricultural Supply and Demand Estimate (WASDE) report last week. Projected beef production was increased slightly and is now estimated to be just 0.3% lower than 2025. Import expectations were increased while exports projections were unchanged. Export data is getting caught up after the federal government shutdown. November beef exports were 19% lower than a year ago at 88,139 metric tons. Export value was down 16%. The decline was driven primarily by China. November beef export value equated to $408.91 per head of fed cattle harvested.
Top Quality
Fed cattle were steady to $1 higher this week. Top quality beef steers and heifers brought $226- $240/cwt, with a few selling higher. Mixed Choice and Select steers and heifers ranged from $214-230/cwt. High grading Holstein steers were mostly steady to $1 higher at $190-$212/cwt, with several packages selling higher. Lower grading steers brought $169-$190/cwt. Silage fed, under finished steers brought $90-$168/cwt. Dairy Beef cross steers were steady to $2 higher, bringing $186-$234. Cows were mostly steady. Most cows brought $119-$150/cwt with a few selling into the mid $160s. Lower yielding cows brought $65-$119/cwt. Doubtful health and thin cows brought up to $65/cwt. Dairy breed bull calves were higher, selling from $700-$1,500/head with some higher. Dairy breed heifer calves brought $200-$600/head. Beef and Beef Cross calves were higher from $750 to $2,000/head. Light and lower quality calves sold up to $60.
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