By Jamie Martin
Fed cattle prices climbed by $6 this week, reaching $203 to $205 per hundredweight on a live basis, while dressed trade stood at $325. Compared to last year’s $187.82 live and $298.41 dressed prices, the increase is significant.
Despite sluggish negotiations between cattle feeders and packers, the market is favouring cattle producers, particularly in northern regions, as grilling season approaches.
At midday Friday, the Choice cutout was $317.87, down $1.82 from Thursday but up $3.56 from last week. The Select cutout stood at $306.32, with the Choice-Select spread widening to $11.55 from last week’s $8.22.
The tight margin between finished cattle prices and wholesale beef is concerning, with packers struggling to cover processing costs. New and expanding packing facilities may face financial difficulties in maintaining profitability over the coming years.
In Tennessee’s weekly auctions, steer prices jumped $6 to $14, and heifers increased by $5 to $9 per hundredweight. Slaughter cow and bull prices held steady. Demand for calves remains strong, with 550-pound steers exceeding $1,800 per head—a 20% rise from last year. Market participants must manage risks effectively to navigate price fluctuations.
The slaughter cow and bull markets are expected to strengthen toward May and June. The high demand for lean grinding beef, supplemented by imports, should sustain domestic prices. "Market participants are aware of the high price environment they are operating in, but they need to manage risk along the way to protect against any turns in the market." With ongoing market fluctuations, producers must remain cautious while capitalizing on price strengths.
Photo Credit: gettyimages-imaginegolf
Categories: National