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.
More fed cattle will be offered for sale this week coming off Independence Day. Futures prices are well below current fed cattle prices, so cattle feeders will be incentivized to pull cattle forward. Heat and humidity forecasted for some of the nation’s cattle feeding areas may provide incentives to market cattle. Cattle weights are expected to reach their lowest during late June or early July. Live weights have been decreasing in recent weeks, and these factors may help to continue that trend this year. Fed cattle prices were generally weak last week with the 5 Area steer price averaging $5.00 lower. Prices this week were expected to be steady to weak and early week trade was mixed. The Choice carcass cutout continues its downward slide, losing $5.80 last week to average $390.73. July 4 impacted harvest schedules last week with the USDA estimating 458,000 head were harvested under federal inspection. That is 79,000 fewer than the previous week and 16,000 less than last year. The Chicago Mercantile Exchange announced it will begin trading beef trim contracts. Both a 90% and 50% lean trim will be offered. Trim prices have been on an upward trajectory, especially lean trim prices. Ninety percent trim remains at record high levels, quoted at $4.65/pound last week while 50% lean was priced at $1.81/pound. The price difference is an illustration of low numbers of domestic non-fed cattle being harvested. #
■ August lean hog futures have gained over $1/cwt in the past five days, lending optimism to the pork sector. Whether it can hold the momentum will be watched closely. Futures prices have struggled in recent weeks with cash and negotiated prices largely flat lining. The carcass base price averaged $90.63 last Thursday, making it 20 cents higher. The pork carcass cutout averaged $96.23 last week, making it $1.07 higher. Much like futures contracts, the cutout value will be seen as a barometer of both domestic and foreign demand. We are approaching the time of year when belly prices typically increase. “BLT” season and the increase in bacon demand it brings is one annual pattern that can be relied on. The USDA estimated that 1.974 million hogs were harvested last week, 387,000 fewer than the week prior and 136,000 more than Independence Day week last year. #
■ No USDA National Sheep Summary was issued last week. There was activity in the sheep and lamb market, however, with an estimated 33,000 head harvested last week. The weekly total is 2,000 fewer than the previous week and 1,000 fewer than the same week last year. More lamb is being imported in recent months, but wholesale prices for lamb continue to increase. The lamb cutout value was $642.17 last Thursday, compared to $634.93 the previous week. #
■ Fed cattle prices were mixed this week at Wisconsin and surrounding state auction markets and stockyards. Top quality beef steers and heifers brought $238-$260/cwt with some higher. Mixed Choice and Select steers and heifers ranged from $225-$238/cwt. High-grading Holstein steers were lower, bringing $218-$230/cwt. Lower-grading steers brought $180-$208/cwt. Silage fed and under-finished steers brought $95-$180/cwt. Dairy Beef cross steers were lower, bringing $210-$245 with some higher. Cows were mostly steady, bringing $120- $161/cwt with some still selling into the $170s. Lower-yielding cows brought $60-$120/cwt. Doubtful health and thin cows brought up to $60/cwt. Dairy breed bull calves were steady to higher, selling from $800- $1,800/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were steady from $800 to $1,900/head. Light and lower quality calves sold up to $60. New crop lambs brought $240-$300 cwt. #
Leave a Reply