Calf and feeder cattle values have softened in recent weeks after impressive growth through most of this year, said the Livestock Marketing Information Center in a letter called In The Cattle Markets.
Many of the peaks followed headlines flush with announcements and news coming out of Washington D.C., the LMIC said. Still, there are regional differences to examine.
PEAK PRICES IN MID-OCTOBER
For a majority of markets, mid-October had the highest documented prices for the year, the LMIC said, with 500– to 600-pound steers (medium & large No. 1) in Montana, South Dakota, Nebraska and the Southern Plains (Oklahoma and Kansas) had reached their highs by Oct. 17, recording $487.60 per cwt, $509.91 per cwt, $496.64 per cwt and $461.78 per cwt, respectively.
Since then, however, prices have slid in the magnitudes of 12.6%, 9.3%, 9.1%, and 11.9%, settling at new prices of $426.25 per cwt, $462.35 per cwt, $451.50 per cwt and $406.71 per cwt by Oct. 31, the LMIC said.
Those declines still fall short, though, from the impressive strength witnessed all year, the LMIC said. Last week, in each respective state/region, prices remained higher than year-ago levels by 31.7%, 44.6%, 44.4% and 41.2%, respectively.
Data from the USDA’s Agricultural Marketing Service that was compiled and graphed by the LMIC showed the weekly average price for 500- to 600-pound medium and large No. 1 steer calves in the Southern Plains at $423.18 per cwt, up from the most recent low the previous week of $406.71 per cwt.
The 2019-2023 average weekly price for those steers tends to climb from late October through December. Last year, prices rose to an early December peak of $340.94 per cwt and held near this number through the end of the year.
PRICES ELSEWHERE
In Washington State, steers of the same class brought in $442.50 per cwt, up about 70% year over year, the LMIC said. Highs in the state were recorded back in late September, when steers were $446.29 per cwt. Recent shifts only brought prices down by 0.9% compared to other markets.
A similar story was observed in Georgia, but losses from annual highs have been comparable to those observed around the Great Plains, the LMIC said. Last week, 500– to 600-pound steers were priced at $364.70 per cwt on average, up 39.2% year over year, while highs were documented during the first week of September at $401.42 per cwt – 9.1% higher than last week.
In his weekly letter Friday, University of Tennessee Agricultural Economist Andrew Griffith said Tennessee auction reports indicated steer prices were $10 to $18 higher than the previous week while heifer prices were $7 to $13 lower
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $230.08 per cwt to $237.00, compared with last week’s range of $230.08 to $238.48 per cwt. FOB dressed steers and heifers went for $363.05 per cwt to $369.99, compared with $363.43 to $373.39.
The USDA choice cutout Wednesday was down $4.77 per cwt at $374.45 while select was down $0.14 at $359.94. The choice/select spread narrowed to $14.51 from $19.14 with 165 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $408.51 per cwt, and 50% beef was $178.54.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.05 to $1.20 a bushel over the Dec corn contract, which settled at $4.35 1/4, up $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Tuesday was $340.67 per cwt, down $2.09. This compares with Wednesday’s Nov contract settlement of $339.02, up $1.35.