In classic supply and demand fashion, cash cattle prices last week rose as fed steer dressed weights declined, according to data from the USDA’s National Agricultural Statistics Service and the Agricultural Marketing Service compiled and published by the Livestock Marketing Information Center in Denver.
Steer dressed weights have a seasonal tendency to decline at this time of the year. The 2019-2023 average of weekly prices declines into the first week of June, the bottom of a rounded turn on a line graph moving toward an annual high in mid-November.
Last year, steer dressed weights had an uncharacteristic decline in January and February only to recover and continue following the seasonal trend at a higher level for the rest of the year.
Weekly Southern Plains slaughter steer prices recovered last week from a six-week decline that had some wondering if consumer demand hadn’t begun to slacken. The move not only proved them wrong but kept the negotiated weekly price higher than the same week last year and well above the previous five-year average.
DRESSED WEIGHTS DECLINING
Last week, the average weight of slaughter steers was 942 pounds, down four pounds, or 0.42%, from 946 the previous week but up 23, or 2.50%, from 919 a year earlier and up 44.2, or 4.93%, from the previous five-year average of 897.8 pounds.
Dressed heifers last week averaged 867 pounds, up one, or 0.12%, from 866 a week earlier, up 21, or 2.48%, from 846 a year earlier and up 35.8, or 4.31%, from the 2010-2023 average of 831.2 pounds.
The seasonal tendency for dressed heifer weights is the same as that for dressed steers – declining to a rounded bottom in June and rising to a November rounded top. Last year, heifer dressed weights also had an uncharacteristic dip in January and February only to rise again and follow the seasonal trend at a higher level.
The winter dip in steer and heifer prices may have been the result of bitterly cold temperatures in both years, a market analyst said.
STEER PRICES REMAIN ELEVATED
Meanwhile, Southern Plains slaughter steer prices remain higher than either last year or the previous five -year average, rising to $202.61 per cwt last week, up $9.00, or 3.05%, from $196.61 a week earlier, up $16.82, or 9.05%, from $185.79 a year earlier and up $72.31, or 55.5%, from the five-year average of $130.30.
Fed steer cash prices have a tendency to remain relatively flat with a low point coming in early July and a peak in November. Last year they rose into April and remained in a narrow range through the year.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $202.67 per cwt to $206.16, compared with last week’s range of $197.87 to $202.79 per cwt. FOB dressed steers, and heifers went for $313.11 per cwt to $318.69, compared with $310.41 to $321.60.
The USDA choice cutout Tuesday was up $2.16 per cwt at $323.32 while select was up $1.33 at $309.23. The choice/select spread widened to $14.09 from $13.26 with 83 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $382.71 per cwt, and 50% beef was $119.08.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.32 a bushel over the May corn contract, which settled at $4.58 3/4, down $0.02 1/4.
The CME Feeder Cattle Index for the seven days ended Friday was $284.11 per cwt, up $0.84. This compares with Tuesday’s Mar contract settlement of $284.97, up $0.35.