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.
News of New World screwworm caused futures markets to move sharply lower initially, but the downturn was short lived with the feeder cattle contracts trading limit up Tuesday. More cases are being reported in Texas, but the market has adjusted after the early confusion whether the news was bullish or bearish. We are now three weeks from the record high cattle prices we saw in May. Both cattle and beef prices seem to have moderated, but the potential for extreme volatility remains.
The Choice cutout was 77 cents higher last week, averaging $393.62. The Select cutout was lower for the third week after running close to the Choice value for several weeks. Negotiated trade last week was steady to slightly higher than the previous week. The June Cattle on Feed report will be released next Thursday instead of Friday due to the Juneteenth holiday. Expectations are for the on-feed number to be about 2% higher than last year. This would make it the fourth highest on-feed number on record. It is somewhat surprising given the overall cattle numbers.
Indications are that while the number of cattle in feedlots is up, feeder cattle availability is low. Last week’s estimated harvest of 553,000 head was 105,000 more than the previous week and 28,000 fewer than last year. Beef exports in April were 11% lower than last year with value falling 5%. There were year-over-year declines in some major markets. While there is optimism China will be buying U.S. raised beef again, the impasse was still in effect during April. While overall exports were lower, beef variety meat exports were strong in April, up 20% from a year ago. Export value equated to $415.88 per head of fed cattle harvested in April, 5% higher than last year.
Fed Cattle
Fed cattle were mostly steady to lower last week. Top quality beef steers and heifers brought $238-$258/cwt with some higher. Mixed Choice and Select steers and heifers ranged from $228-$238/cwt. High grading Holstein steers were steady to lower bringing $210-$238/cwt. Lower grading steers brought $180-$210/cwt. Silage fed and under finished steers brought $95-$180/cwt. Dairy Beef cross steers were lower, bringing $210-$248 with some higher. Cows were mixed, bringing $103-$159/cwt with some still selling into the $170s. Lower yielding cows brought $60-$110/cwt. Doubtful health and thin cows brought up to $60/cwt. Dairy breed bull calves were steady to higher selling from $800-$1,900/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were mostly steady from $800 to $2,000/head. Light and lower quality calves sold up to $60. New crop lambs brought $210-$280 cwt.
Leave a Reply