Cash fed cattle trade hit all time highs last week.
The North led the advance with negotiated dressed prices at mostly $312 to $315 and live sale prices mostly $200 paid by majors.
However, according to Brad Kooima of Kooima Kooima Varilek in Sioux Center, Iowa, there were even some trades higher than that.
“Without giving packers names, I can come up with five, I believe, that paid $200 here in our neck of the woods on Friday. And with some instances of, well, my brother sold a pen of cattle for me to a regional for $201 on Friday, I picked up, of course.”
The South traded mostly $196-$197, which was up $4-$5 from the previous week’s weighted averages.
Kooima says, “I know that on Saturday there was some isolated bids in Kansas for $197 for which Saturday, that’s crazy, that’s unheard of.
That led to a new all-time high for the 5-area weighted average at $198.93 and exceeded the previous record from early July 2024 of $197.09.
Kooima thinks cash could be higher again this week despite fresh formula cattle.
What’s driving the cash strength?
He says a shot of winter weather, strong beef demand and historically tight cattle numbers, especially in the North.
Steer and heifer slaughter for 2024 ended .5% below a year ago and cow slaughter was down even further.
“Cow slaughter down a mile, you know what, 18% or 19% for the year. So this need to find the grind, the hamburger type feed is very real, and the demand for that has been almost unprecedented how good it is. So, I guess I think steady higher, I think there’s a shot of two or two on the right kind here in the North.”
Cattle producers like Ty Klabenes, a farmer feeder from Clearwater, Nebraska, are still optimistic about the cash cattle market, at least near term.
“Until April and then I think you’re gonna see a devastating turn. I think it’s It’s going to burn some people pretty bad if you’re not protected,” he explains.
His outlook is based on the higher weights, which are making up for tight numbers and some early signs of herd expansion.
He says, “This year is the first year I’ve actually seen quite a bit more heifer retention than the past years.”
Plus, he’s concerned about the record cash prices being paid in the feeder market.
“People are buying replacements at such high prices and even fat cattle they’re buying at outrageous prices. Actually two weeks ago I seen the highest I’ve ever seen which was right down the road here they sold 650 pound steers for just shy of five bucks. I mean there’s no algorithm that I’ve got that can make that work,” he adds.
Even with tight margins, he says some feedlots have to pay up as they need the cattle.
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