Livestock Marketing Information Center data showed that beef carcass values declined in October while fed cattle and retail beef prices rose.
Live, fed cattle prices rose, while by-product and boxed beef prices declined, cutting the carcass value and the live-to-cutout spread. At the same time, the average retail price rose.
The per-head value of the steer in October of $1,243.75 made a gain to a carcass value of $1,783.02 (when adding in the by-product values), and the meat and by-products had a retail value of $3,373.73. The slaughter, packaging, transportation and retailing costs add so much to the cost of the meat seen in retail stores.
KANSAS CATTLE PRICES UP
The data showed that average live cattle prices in October were $124.38 per cwt, up $1.06 or 0.86%, from $123.32 in September and up $4.75, or 3.97%, from the most-recent low of $119.63 in July.
October’s fed steer price actually was the highest of the year so far. The lowest monthly value was January’s at $111.24 per cwt, followed by February at $114.00.
CARCASS VALUES MIXED
Even though fed cattle prices were up from September and August, the value of the meat and by-products were down, the LMIC said.
The listed by-product value was mixed with October at $162.24 a head, down $2.12, or 1.29%, from September’s $164.36. However, October’s by-product value still was more than August’s $158.12 a head by $4.12, or 2.61%, and July’s $150.18 by $12.06, or 8.03%.
The boxed beef cutout was where it was at. The LMIC data showed the October choice cutout at $283.02 per cwt, down $36.73 or 11.5%, from September’s $319.75 and down $38.59, or 12.0% from August’s $321.67. October’s value, however, was more than July’s $273.40 by $9.62, or 3.52%.
That left a live-to-cutout price spread in October of $701.50 per head, down $244.06, or 25.8%, from September’s $945.56 and down $265.48, or 27.5%, from August’s $966.98 but up $25.20, or 3.73%, from July’s $676.30.
RETAIL PRICES MOVE HIGHER
The retail price of choice beef in October came to 790.1 cents per pound. This was up three cents, or 0.38%, from September’s 787.1 cents, up 26.2 cents, or 3.43%, from August’s 763.9 cents and up from July’s 763.9 cents.
Retail beef prices have risen every month this year, starting at 640.7 cents a pound in January.
That left an October cutout-to-retail price spread of $1,590.71 a head, up $234.13, or 17.3%, from $1,356.58 in September, up $355.39 or 28.8%, from $1,235.32 in August and up $98.27, or 6.58%, from July’s $1,492.44.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $129.52 to $131.75 per cwt, compared with last week’s range of $125.93 to $127.88. FOB dressed steers and heifers went for $197.79 to $203.85 per cwt, versus $195.39 to $198.32.
The USDA choice cutout Thursday was down $0.38 per cwt at $285.14, while select was up $0.67 at $267.29. The choice/select spread narrowed to $17.85 from $18.90 with 113 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA reported Wednesday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.30 to $1.40 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.69 1/2 a bushel, up $0.00 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $155.47 per cwt up $0.49. This compares with Thursday’s Nov contract settlement of $157.32 per cwt, up $0.67.