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 that Tyson Foods is restructuring its beef processing operations dominated headlines over the weekend. The company has shuttered its Joslin, Illinois location as well as a case-ready facility in Eagle Mountain, Utah. Tyson Foods is seeking a buyer for their Pasco, Washington beef processing plant. The Joslin location had a 3,000 head/day capacity and was a destination for many Wisconsin-raised beef breed fed cattle. The company cited steep losses in their beef division and plans to concentrate on its operations around facilities in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
Packing Plants
According to Dr. Charly Martinez, Director of The King Ranch® Institute for Ranch Management, packing plants across the nation ran between 81%-83% of capacity each month last year, illustrating the tight cattle supply. Last week’s estimated harvest of 517,000 head was 8,000 more than the previous week, but 19,000 fewer than the same week last year. While cattle numbers are at historic lows, there are likely more cattle available than are being harvested in recent weeks. The Choice cutout value responded to the lower production and was $6.73 higher last week, averaging $373.24. Negotiated fed cattle prices were sharply lower, with bids of $228/cwt at the end of the week, almost $7/cwt lower than the previous week. A USDA Cattle on Feed report will be released Friday afternoon. Placements are expected to be 5%-6% below last July. Placements are typically lower in July and August, with September, October, and November being the months with the largest number of cattle moving into feedlots. It is estimated that the number of feeder cattle available outside of feedlots is 250,000 head less than this time last year.
Fed cattle prices were sharply lower this week. Top quality beef steers and heifers brought $215-$230/cwt. Some high-grading, high-yielding steers with an overnight stand sold from $230-$234/cwt. Mixed Choice and Select steers and heifers ranged from $200-$215/cwt. High-grading Holstein steers were lower, bringing $195-$215/cwt. Lower-grading steers brought $189-$195/cwt. Silage fed and under finished steers brought $95-$188/cwt. Dairy Beef cross steers were lower, bringing $205-$227 with some higher. Cows were mostly lower, bringing $110- $142/cwt with some selling into the mid $160s. Lower-yielding cows brought $50-$110/cwt. Doubtful health and thin cows brought up to $50/cwt. Dairy breed bull calves were steady, selling from $600-$1,500/head. Dairy breed heifer calves brought $200-$800/head. Beef and Beef Cross calves were mixed from $800-$1,700/head. Light and lower quality calves sold up to $60. Fed lambs over 100 pounds brought $220-$300/cwt with light lambs selling from $260-$325/cwt.
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