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 cattle prices were steady at mid-week. Harvest dipped to 512,000 head last week, and that was 21,000 fewer than the previous week and 52,000 fewer than last year. Year-to-date harvest is running 10% below last year with beef production 7.5% lower. The slower harvest pace has not helped packer margins, with wholesale prices drifting lower as well. The Choice beef cutout last week averaged $382.48 making it $9.79 lower. The Select cutout value is again higher than the Choice, averaging $383.98 last week. One explanation for the inversion could be the high number of cattle grading Choice and Prime with fewer Select cattle available. The average retail price of all beef cuts in March was $9.54/pound, 9 cents lower than a year ago. Choice beef averaged $10.08/pound, and that was 4 cents lower. A monthly Cattle on Feed report will be released Friday. Early expectations are for placements to be about 7% lower than last March and for inventory to be 1% lower. Marketings are also expected to be lower as feedlot operators are keeping cattle on feed longer.
Top Quality
Fed cattle sold stronger last week. Top quality beef steers and heifers brought $228-$250/cwt with several lots higher. Mixed Choice and Select steers and heifers ranged from $215-228/cwt. High grading Holstein steers were steady to strong at $196-$225/cwt. Lower grading steers brought $172-$196/cwt. Silage fed and under finished steers brought $92-$172/cwt. Dairy Beef cross steers were steady to steady to higher at $195-$240. Cows were mostly steady and brought $110-$150/cwt with a few selling into the low $160s. Lower yielding cows brought $65-$110/cwt. Doubtful health and thin cows brought up to $65/cwt. Dairy breed bull calves were higher, selling from $750-$1,700/head with some higher. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves sold strong from $800 to $2,100/head. Light and lower quality calves sold up to $60.
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