While the market average trading range has narrowed from the recent historically wide range, the total market average in the six-state region has priced in a fairly tight range in the low to middle $180’s since June.
America’s shrinking cow herd has generated sharp packer interest for the smaller pool of cows aggressively culled in drought regions leading to record high cutter cow carcass values.
In the second quarter of 2023, national average carcass quality grades held up especially well considering that carcass weights were 15 to 20 lb. lighter than a year ago in the first quarter.
Cash fed steer prices reached record highs two weeks ago, and the trajectory – fueled by strong demand and restricted head counts – was predestined to hit the seasonal ceiling.
Moving forward, lower quality grades in May and lighter carcass weights combined with shorter fed cattle supplies may be expected, driving premiums into the high-quality cattle and beef markets.
A broad view of recent carcass cutout values shows plenty of strength in wholesale boxed beef prices. To contrast current values to a year ago, CAB and commodity Choice cutouts are 14% higher.
As you’re contemplating the future impact of today’s genetic decisions, consider the marketability of both feeder calves and potential replacement heifer progeny.
With current fed cattle carcass weights 16 lb. lighter than a year ago marbling achievement, on average, is likely to underperform in contrast to the past two years.
