Monthly retail prices per gram of protein year over year were higher for ground beef, boneless pork chops and eggs, according to the USDA’s monthly Livestock, Dairy, and Poultry Outlook: October 2024, which was released Friday.
Conversely, the retail price per gram of protein was year over year lower for bone-in chicken legs, boneless chicken breast and boneless ham, the report said.
Data comparisons were for information on various products from January 2023 to September 2024, the report said. And, while protein content estimates per gram is static, retail prices respond to various economic factors that affect supply and demand.
GROUND BEEF PRICES UP
Retail prices per gram of protein were up about 7.9% from a year earlier. The report said this likely was in part driven by lower cow slaughter – the main supply source.
The USDA also said national comprehensive boxed beef cutout values have declined steadily to $300.09 per cwt for the week ended Oct. 4 from the summer peak of $324.47 the week ended July 5. However, preces remain higher than last year, and based on daily report of boxed beef cutout values, prices were showing a typical pre-holiday-season boost, which is helping to support slaughter steer prices.
The September average price for slaughter steers in the 5-area marketing region was $183.56 per cwt, declining for a second consecutive month, and was $0.15 per cwt lower than September last year, the Outlook report said. Packers’ margins were aided by improved boxed beef prices but likely will remain relatively constrained by slaughter cattle prices.
Cattle prices were expected to decline through the end of the year, though less than previously anticipated, the report said. As a result, the slaughter steer price forecast for fourth-quarter 2024 was raised $3 to $186.00 per cwt. Recent price strength was carried through to early 2025 for an annual average price of $186.50 per cwt.
STEER PRICES DOWN
In September, the weighted-average price for feeder steers weighing 750 to 800 pounds at the Oklahoma City National Stockyards was $246.78 per cwt, the report said. This was a decline of $0.50 from August and $8.61 lower than September 2023.
During September, weekly prices hit a summer low of $240.27 per cwt, the lowest weekly price since February 5, the report said. Prices have since risen, with the first week of October reporting feeder steers sold for $252.65 per cwt.
Based on relative lower price levels in recent weeks, the fourth-quarter price forecast was lowered $2 to $253.00 per cwt, the report said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $187.00 per cwt to $189.35, compared with the previous week’s range of $185.99 to $188.49 per cwt. FOB dressed steers, and heifers went for $292.16 per cwt to $298.16, compared with $290.85 to $297.16.
The USDA choice cutout Friday was up $1.39 per cwt at $320.65 while select was up $0.68 at $294.20. The choice/select spread widened to $26.45 from $25.74 with 105 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $352.78 per cwt, and 50% beef was $58.12.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.40 a bushel over the Dec corn contract, which settled at $4.04 3/4 a bushel, down $0.02.
Five steer contracts were tendered for delivery Friday against the Oct contract.
The CME Feeder Cattle Index for the seven days ended Thursday was $250.80 per cwt, up $0.55. This compares with Friday’s Oct contract settlement of $248.32, up $1.60.