Cattle Prices on Record Pace

By Wes Ishmael

Everybody knew cattle prices were going to increase, but the pace so far this year has likely exceeded the expectations of all but the most optimistic.

Cash fed steer prices set a nominal record high price the week ending April 10 when the five-area direct weighted average price reached $173.10/cwt. on a live basis. It climbed as high as $188.75 the week ending June 11 and headed into July at $181.33.

Feeder steer prices (600-700 lbs.) at the start of July were $61-$71/cwt.

higher year over year on a reginal basis — up 30-40% — according to USDA’s National Weekly Feeder and Stocker Cattle Summary.

“The ongoing story of tight cattle supplies combined with improving pasture conditions and lower yearover-year feed costs continues to push feeder cattle prices higher,” explain analysts with USDA’s Economic Research Service (ERS) in June’s Livestock, Dairy and Poultry Outlook. “Demand for limited supplies of feeder cattle remains strong. Feedlots are looking to fill their feedyards to take advantage of lower feed costs and the prospects for higher fed cattle prices, while recent rains have improved the drought situation in a few areas, likely creating some demand for cattle to go on grass.”

ERS forecast feeder steer prices (750-800 lbs., Oklahoma City) at $209/cwt. in the second quarter, $224 in the third quarter and $226 in the fourth quarter for an annual average of $227. ERS pegged the annual average for next year at $226.50.

In June’s World Agricultural Supply and Demand Estimates (WASDE), ERS raised the projected quarterly five-area direct average fed steer price $5-$9 for the remainder of the year to an annual average of $171.70/cwt.