USDA-reported weekly Southern Plains auction prices for 85% to 90% lean slaughter cows remain higher than last year or the 2018-2022 average.
A market analyst said that, given the gap, it was likely that weekly prices would finish 2024 higher than either of the two comparison values.
PRICES HOLDING HIGHER
Weekly Southern Plains slaughter cow prices have held at levels higher than last year and the previous five-year average all year. They have, however, tended to follow the average trend of rising to an annual high in the summer and falling away toward the end of the year.
Last year, they also were higher than the five-year average in every week but one in February. From there, the gap between weekly prices and the five-year average widened unevenly throughout the rest of the year.
For the second week of December, the weekly average slaughter cow price was $97.86 per cwt, down $6.55, or 6.27%, from $104.41 a week earlier but up $10.49, or 12.0%, from $87.37 in the same week of 2023 and up $53.13, or 118.8%, from the previous five-year average of $44.73.
The analyst said it was unlikely that weekly slaughter cow prices would decline much if any in the next year or two, especially if drought conditions abate and pasture conditions improve to allow herd rebuilding. Herd reduction has been fueled in part by a lack of grass on which to graze them, and while many would like to take advantage of high calf and feeder cattle prices by keeping cows at home, they just can’t.
When pasture conditions improve reliably, herd rebuilding is likely to show up first in reduced slaughter cow numbers and rising prices, the analyst said. It’d be cheaper at first to stop selling cows than to keep heifers for breeding.
CUTTER COWS PRICES ALSO UP
Weekly cutter cow prices also have held at higher levels than last year and the 2018-2022 average, according to USDA data compiled by the Livestock Marketing Information Center in Denver.
Last week, the weekly average price was reported at $103.83 per cwt, up $5.16, or 5.23%, from $98.67 a week earlier, up $17.97, or 20.9%, from $85.86 a year earlier and up $54.41, or 110.1%, from the previous five-year average of $49.42.
The weekly cutter cow price was higher than the average all last year and was higher than last year all through this year, even though seasonal trends to make the annual high sometime in the summer and lows in the winter were established.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $191.11 per cwt to $197.07, compared with last week’s range of $191.00 to $196.58 per cwt. FOB dressed steers, and heifers went for $301.97 per cwt to $306.55, compared with $300.56 to $308.10.
The USDA choice cutout Thursday was down $0.74 per cwt at $323.48 while select was off $0.29 at $294.23. The choice/select spread narrowed to $29.25 from $29.70 with 85 loads of fabricated product and 31 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $328.67 per cwt, and 50% beef was $95.05.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.19 to $1.35 a bushel over the Mar corn contract, which settled at $4.59 1/2, up $0.01.
The CME Feeder Cattle Index for the seven days ended Wednesday was $261.77 per cwt, up $0.72. This compares with Thursday’s Jan contract settlement of $266.47, up $3.45.