The number of cattle in feedlots on June 1 was about 3% lower than a year ago, according to the latest USDA Cattle on Feed Report. The number of cattle placed in May, however, came in higher than expected at 104.6% compared to 2022. The average pre-report trade guess was 101.7%.

Feeders and stocker cattle being pulled off drought-stressed pasture, wheat, and rye early is likely the cause of higher placements. The number of cattle on feed over 150 days was down compared to both the prior month and June 2022, as were cattle on feed over 120 and 90 days.

Beef production in May was 1% higher than last year, with harvest also up 1%. Drought in cattle feeding areas caused cattle to be pulled ahead with live weights, decreasing by two pounds. Beef cow harvest year-to-date is running 4.95% of the 2023 beginning cow inventory, compared to 5.4% this time last year. That number averaged 3.5% from 2015-2018, indicating further that herd expansion is not taking place.

Dairy cow harvest is an area to be watching. In May, 249,100 dairy cows entered the beef chain. That was 5,500 head more than April and 23,900 head more than May 2022. Year-to-date, 75,600 more dairy cattle have been harvested when compared to last year.

Fed cattle prices were $4.00 lower last week. The Choice beef cutout was down $3.97 to average $335.96 last week. The weekly harvest estimate of 649,000 head was up 15,000 on the week and 16,000 lower than the same week last year.

Cash hogs higher

Cash hogs were $3.50 higher last week with the pork cutout value increasing $5.99 to average $96.12. This makes the cutout value about $15.00 below a year ago. May hog harvest was 5.5% higher than last year. Dressed weights were three pounds lighter.

Some commentators are pointing to higher weekly sow harvests as a hint of what to expect from the June 1 Quarterly Hogs and Pigs report. Expectations are for a smaller U.S. sow herd. Each sow would represent 10-11 pigs per litter, times two litters per year, so a sizeable drop in sow numbers will have a large impact on hog numbers heading into next year.

The latest Cold Storage report showed frozen pork supplies at 525,000 pounds, or about one week’s worth of production. While the total is 3.7% less than a year ago, belly supplies are 45.5% higher. Hog harvest was estimated to be 2.372 million last week, 42,000 head higher than the previous week and 60,000 more than the same week last year.

Market lamb prices climb higher

Prices were called steady to higher last week on traditional market lambs. No major lamb consumption holidays are on the near-term horizon, and that could be a reason for continued pressure on light lambs. The lamb cutout value showed strength, finishing last week at $510.9, making it $1.77 higher than the previous Friday. Lamb and mutton in cold storage for May was 2% higher than April and up 13% from May last year. The estimated harvest was 34,000 head, level with the previous week and 1,000 more than the same week last year.

Wisconsin livestock auction roundup

Beef breed fed cattle sold lower this week at Wisconsin and surrounding state auction markets, bringing $145 to $176/cwt. High Choice and Prime steers and heifers brought $176 to $182, with a few higher. The Holstein steer market was steady to higher from $125 to $157/cwt with the top end bringing $157 to $159. Silage fed, under finished, or heavy dairy breed steers brought $75 to $125/cwt. Dairy x Beef steers were bringing $120 to $170, with some to $175/cwt.

Cows were $2 to $3 higher. A bulk of the cows brought $69 to $101/cwt with beef breed, fleshier cows selling to $115 and above. Doubtful health and thin cows were bringing $69/cwt and down.

Dairy breed bull calves were mostly steady to lower, bringing $100 to $310/cwt with some heavier, well cared for calves selling to $360. Beef and Beef Cross calves were steady, selling to $600/cwt. Market lambs were higher, bringing $170 to $190/cwt. with a few to $202. Light market lambs were lower and sold to $170/cwt.

Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.