Since hitting their 2024 high two weeks ago, weekly slaughter steer prices have declined, but they remain north of last year and well above the 2018-2022 average.
It looks like weekly slaughter steer prices could hold within a range for the next four months before dropping off late in the year, a market analyst said.
PRICES HIGHER THAN 2023
Except for the first week of June, weekly Southern Plains slaughter steer prices have held at levels higher than the same week in 2023, data from the USDA’s Agricultural Marketing Service showed.
The data, which was compiled and published by the Livestock Marketing Information Service in Denver, showed last week’s price at $188.00 per cwt, down $0.56, or 0.30%, from $188.56 a week earlier but up $7.68, or 4.26%, from last year’s $180.32 and up $73.08, or 63.6%, from the previous five-year average of $114.92.
Weekly fed steer prices in the Southern Plains typically decline to an annual low the last week of June where they struggle to rise into early September where they rise to November and December annual highs. The year-end highs for the five-year average were $128.78 and $129.96.
FEEDER STEER PRICES UP FROM LAST YEAR
AMS weekly prices for 700- to 800-pound No. 1 Southern Plains feeder steer prices have held well above last year and the 2018-2022 average, although the difference between this year and last year has narrowed since March.
Last week’s average price for those feeder steers was $270.38 per cwt, up $9.86, or 3.78%, from $260.52 a week earlier, up $20.16, or 8.06%, from $250.22 a year earlier and up $116.09, or 75.2%, from the previous five-year average of $154.30.
On average, the weekly price for Southern Plains 700- 800-pound No. 1 feeder steers rises in July and August to its annual high late in August. From there, it tends to flatten through December.
Last year, the weekly feeder cattle price rose to its annual high the second week of September at $258.42 per cwt, whereupon it fell away to a late November low,
Feeder cattle prices appear to be struggling to hold a top for now, despite last week’s 2024 high, an analyst said. However, this could be deceptive as feeder cattle supplies tighten with serious herd-rebuilding efforts expected in the fourth quarter. Further supply tightening could be seen next year as more heifers are retained for the cow herd rather than be sent to the feedlots.
It should be noted, the analyst said, that cull cow supplies could begin to increase soon as annual weaning activities begin and cull cows are sent to slaughter.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $191.07 per cwt to $192.54, compared with last week’s range of $188.00 to $198.00 per cwt. FOB dressed steers, and heifers went for $298.45 per cwt to $302.57, compared with $296.12 to $308.96.
The USDA choice cutout Monday was up $1.04 per cwt at $314.81 while select was up $4.06 at $301.52. The choice/select spread narrowed to $13.28 from $16.31 with 114 loads of fabricated product and 31 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $380.06 per cwt, and 50% beef was $155.22.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.08 to $0.10 at $1.46 to $1.70 a bushel over the Sep corn contract, which settled at $3.96 1/4 a bushel, up $0.01 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $258.75 per cwt, down $0.09. This compares with Monday’s Aug contract settlement of $256.42, down $3.27.