USDA data show weekly steer and heifer dressed weights to be rising, and last week both were higher than either last year or the 2018-3022 average.
It also makes sense to believe the trend of heavier weights will continue for the time being. But this doesn’t mean weights won’t decline into the seasonal low around late May to early June.
STEER WEIGHTS RISING
The Livestock Marketing Information Center in Denver posted USDA weekly steer carcass weights last week at an average of 914 pounds, equal to the previous week but up 12 pounds, or 1.33%, from last year’s 902 pounds and up 19.2, or 2.15%, from the previous five-year average of 894.8 pounds.
Weekly average steer carcass weights began the year much higher than they were last week at 937 pounds. From there, they declined to a 2024 low of 909 pounds the first week of February before bouncing to last week’s 914 pounds.
Seasonally, fed steer carcass weights decline into late spring/early summer as those that were placed on feed at a younger age and lighter weights exit the feedlot at seasonally lower weights. Carcass weights also usually exhibit the results of harsh winter weather during this time of year.
However, apart from a three-week period in January, this winter’s weather in the Plains has been mild compared with other years, and this may be contributing to the heavier weights.
But that’s not all of it. This year, there are fewer feeder cattle available, and the ones that do come to market are expensive. To compensate, feedlot managers are keeping steers and heifers on feed a little longer to garner all the dollars per animal they can before trying to refill the pens with expensive replacements.
Also, packers need the cattle to fill beef contracts. So far, they are resisting the urge to pay up for a declining supply of fed cattle by shortening kill schedules. Already, Saturday kills are down appreciably from early in the year, and there are reports of shorter weekday hours.
But if packers get squeezed by beef contracts, they will have no choice but to come to the table.
HEIFER DRESSED WEIGHTS ALSO RISING
Heifer dressed weights also are rising with last week’s average weight listed at 834 pounds, up three, or 0.36%, from 831 the previous week and the same week last year and up 1.2 pounds, or 0.14%, from the 2018-2022 average of 832.8 pounds.
Like steers, heifer carcass weights usually decline into the late May/early June period before rising again for the rest of the year. However, last year, weekly heifer carcass weights bottomed in the third week of June.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $185.00 per cwt to $190.61, compared with last week’s range of $183.58 to $186.24 per cwt. FOB dressed steers, and heifers went for $287.48 per cwt to $293.03, compared with $287.28 to $292.50.
The USDA choice cutout Wednesday was down $0.77 per cwt at $309.82 while select was up $1.44 at $301.04. The choice/select spread narrowed to $8.78 from $10.99 with 86 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $321.69 per cwt, and 50% beef was $103.05.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.75 a bushel over the May corn contract, which settled at $4.41 1/4 a bushel, down $0.00 1/2.
The CME Feeder Cattle Index for the seven days ended Tuesday was $248.19 per cwt, down $0.07. This compares with Wednesday’s Mar contract settlement of $250.27, up $1.30.