Wholesale prices for boxed cow beef keep rising, pushing live cow prices and allowing cow/calf producers a way out of their drought-stressed pasture situation.
Well, it’s not a good way out, but at least it offers better compensation for selling the income-generators of their operation than if prices were lower.
CUTOUT $60 PER CWT HIGHER
The weekly boxed cow-beef cutout value from the USDA’ Agricultural Marketing Service was $360.49 per cwt, up $10.06, or 2.87%, from $350.43 a week earlier, up $64.39, or 21.7%, from $296.10 a year earlier and up $126.42, or from the 2020-2024 average of $234.07 per cwt. Last week’s average price also was up $48.05, or 15.4%, from $312.44 per cwt, the first point in 2026.
Using the 2020-20224 average as a guide, the weekly boxed cow-beef cutout value from the USDA should hit its peak in early June, level off with a declining bias and begin an autumn decline in September. Last year, the weekly price peaked the last week of September and then declined into year end.
So, this year’s weekly boxed cow-beer cutout value could see some pressure to stop rising any time now, but declining pressure may wait until fall.
SLAUGHTER, CUTTER COW PRICES ALSO STRONG
Based on the strength in cow meat, prices for slaughter and cutter cows also are up from last year and the previous five-year average.
Both categories are slaughter cows, but a subset of these cattle is classed as cutters because they carry less flesh than those that carry enough meat to avoid the lower classification.
Weekly USDA-AMS prices for slaughter cows jump around and last week were listed at $173.54 per cwt, down $1.41, or 0.81%, from $174.95 a week earlier but up $27.30, or 18.7%, from $146.24 a year earlier and up $88.94, or 105.1%, from the previous 5-year average of $84.60
Weekly cutter cow prices were listed by the USDA-AMS at $154.99 per cwt last week, down $1.65, or 1.05%, from $156.64 a week earlier, up $27.97, or 22.0%, from $127.02 a year earlier and up $76.06, or 96.4%, from the 2020-2024 average of $78.93.
On average, slaughter cow and cutter cow prices tend to curve through the year, peaking around July and sliding away into December. However, both showed some resistance to the normal, second-half slide.
Whether cow prices will decline again this year with drought affecting a majority of the contiguous 48 states is questionable, a market analyst said. Besides, after years of culling based on drought and high prices for cull cows, there may not be enough cows left to sell that would pressure prices like normal.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $257.00 per cwt to $262.08, compared with last week’s range of $236.71 to $264.00 per cwt. FOB dressed steers and heifers went for $405.24 per cwt to $409.71, compared with $407.61 to $416.65.
The USDA choice cutout Tuesday was up $1.24 per cwt at $394.07 while select was up $1.72 at $384.81. The choice/select spread narrowed to $9.26, from $9.74 with 96 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $456.59 per cwt, and 50% beef was $184.09.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.40 a bushel over the Jul corn contract, which settled at $4.40 1/2 a bushel, down $0.03 1/2.
The CME Feeder Cattle Index for the seven days ended Monday was $364.26 per cwt, down $2.88. This compares with Tuesday’s Aug contract settlement of $348.42, down $3.12.