Retail beef prices in June were above year-ago for the fourth month in a row. The average price of choice beef in grocery stores in June was $4.491 per pound. That was 2.8 cents higher than in May and 21.4 cents higher than in June 2009.
The distribution-retail margin on a pound of retail beef in June was up 21.5 cents from May, but down 3.2 cents from a year earlier. The packer margin in June was down 15.6 cents per retail pound compared to the month before and down 6 cents from June 2009. The net farm value of a pound of beef at retail during June was down 3.1 cents from May, but up 30.6 cents from 12 months earlier.
Export demand for U.S. beef in May 2010 was up 34% from the level of May 2009. Based on preliminary data, it looks like domestic retail demand for beef in June was above year-ago for the first time in 15 months. Because of the strong export demand for beef, June fed cattle demand was up 10% from June 2009 and above year-ago for the seventh consecutive month.
The beef cutout value rose this week. On Friday morning, the choice boxed beef carcass cutout value was $1.5511/pound, up 0.9 cents for the week and 12.22 cents higher than last year. The select cutout was up 2.19 cents from the previous Friday to $1.4685 per pound.
Fed cattle prices rose for the fourth week in a row. The 5-area daily weighted average price for slaughter steers sold through Thursday of this week on a live weight basis was $94.79/cwt, up $1.37 from a week earlier and $11.41 higher than a year ago. Steers sold on a dressed weight basis this week averaged $150.45/cwt, 25 cents higher than the week before and $18.24 higher than last year.
This week's cattle slaughter totaled 666,000 head, the same as the week before and up 7.10% compared to the same week last year. Steer carcass weights averaged 834 pounds during the week ending July 10. That was up 7 pounds from the week before, but 6 pounds lighter than a year ago. This was the 33rd consecutive week with steer weights below year earlier levels. Because of the lighter weights, year-to-date beef production is down 0.8% while year-to-date cattle slaughter is up 1.2%.
Cash bids for feeder cattle this week were mostly in the range of $2 lower to $2 higher with heifer prices more likely to be up than steer prices. The price ranges at Oklahoma City for medium and large frame steers were: 400-450# $129.75-$139.50, 450-500# $132.50-$137, 500-550# $124-$133, 550-600# $119-$126, 600-650# $111.50-$125, 650-700# $108.50-$119.50, 700-750# $111-$117.75, 750-800# $110.50-$116, and 800-1000# $100.75-$112/cwt.
The August fed cattle futures contract ended the week at $93.42/cwt, up $1.15 compared to the previous Friday. The October contract gained $1.10 this week to end at $94.72/cwt. The December contract settled at $96.47 and February ended the week at $97.67.
By Ron Plain, University of Missouri