By Jamie Martin
U.S. cattle prices saw a slight pause in gains last week, with some regions reporting lower values. Fed cattle, particularly 5-Area fed steers, dropped by around 2% compared to the previous week.
Transactions also declined by nearly 10%. Despite this, prices are still up by 17–18% compared to the same period last year.
Feeder cattle markets showed mixed outcomes. In eastern states, lighter weight cattle saw modest declines of up to 3.5%. Heavier feeder steers experienced wide weekly changes—from gains above 8% to losses nearing 10%.
Western states like Nebraska reported stronger price movements upward. Overall, feeder cattle values remain higher than a year ago.
Wholesale beef prices surged, with the choice cutout nearing $400/cwt. The choice-select spread was down 32% from last year, showing limited difference between the two grades. This suggests steady demand and tight beef supplies.
Retail beef prices showed some changes in May. Steak and roast prices fell slightly, while ground beef costs rose. Yet, retail beef prices are still well above last year’s.
Grain markets stayed quiet following the release of acreage and grain stocks data, which matched forecasts. The result is a continued environment of lower feed prices—beneficial to feeder cattle margins.
“The generally low feed-price environment supports feeder cattle prices and feeder margins,” noted an expert.
Looking ahead, some downward pressure on lighter weight feeder cattle is expected this fall as more calves reach auction. However, tight supply levels may keep price drops limited.
Concerns remain about potential macroeconomic shifts and feed price volatility, alongside animal health threats like screwworms. Still, cattle market fundamentals remain firm.
Photo Credit: gettyimages-jacqueline-nix
Categories: National