Weekly regional feeder cattle prices are off from the previous week but in general appear to be locked into a sideways pattern.
It’s as if cattle feeders are afraid current weakness in fed cattle prices will continue. Continual expectations that beef consumers will pull back from beef may have the cattle and beef markets spooked, a market analyst said.
PLENTY OF OPTIONS
It seems odd that consumers have shown a willingness to follow beef prices higher over the last two years, the analyst said. But some studies have suggested that higher beef prices aren’t the whole issue, that retail beef prices as a percentage of spendable income is more important.
With that being said, however, there are a lot of options for consumers in the grocery store, many of which are offering pre-seasoned, or even pre-cooked meats at a far lower price per plate than beef. So, beef may not be in the center of the plate as many nights a week as it was a few months ago, but it definitely isn’t off the shopping list.
Pre-cooked chicken options are in practically every store, and they’re delicious. No heating up the kitchen to roast or fry a chicken that tastes better than most could do it themselves.
Also, many stores offer pork spareribs or pre-made pork chop dishes that take little preparation. It’s not beef, but it’s way cheaper, and it’s delicious.
In mid-summer, many retail grocers report an increase in meat purchases from their deli-counter. These food purchases often go under the radar, but for individual families, a meal of cold cuts isn’t bad when there’s no preparation involved. Sliced turkey and ham often are favorites, even before beef prices started to rise from the current diminutive cattle herd.
FEEDER STEER PRICES DOWN FROM PEAK, STILL STRONG
USDA data compiled by the Livestock Marketing Information Center in Denver show last week’s feeder steer prices around the country to be mostly lower from the previous week but still much higher than either last year or the 2020-2024 average. So the current setback in cattle and beef prices may be only temporary, the market analyst said.
Billings, Mont., reported 400- 500-pound steer calves last week at $572.95 per cwt, down from $593.75 a week earlier but holding within the roughly $550 to $600 range for the year.
The South Dakota weekly price for those same steer calves last week was $530.83 per cwt, down from $550.85 a week earlier. These prices have hovered around $575 this year.
Georgia prices for those 400- to 500-pound steer calves last week were $507.29 per cwt, up from $500.88 a week earlier, getting back above the $500 mark.
Washington weekly price for those calves last week was $510.00 per cwt, down from $538.33 a week earlier. These prices have had the most variation this year, ranging from about $455 to $585.
Nebraska’s price for these calves last week was $565.46 per cwt, up from $549.54 a week earlier and within the 2026 range of about $540 to $590.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $238.00 per cwt to $252.00, compared with last week’s range of $248.00 to $256.91 per cwt. FOB dressed steers and heifers went for $373.92 per cwt to $388.86, compared with $389.00 to $400.06.
The USDA choice cutout Thursday was down $0.63 per cwt at $362.87 while select was down $1.82 at $348.75. The choice/select spread widened to $14.12, from $12.93 with 99 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed the daily weighted average wholesale price for fresh 90% lean beef as $459.04 per cwt, and 50% beef was $159.53.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.18 to $1.33 a bushel over the Sep corn contract, which settled at $4.63 1/4 a bushel, up $0.01 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $350.72 per cwt, down $2.40. This compares with Thursday’s Aug contract settlement of $344.07, up $2.90.