Fed Steer Prices Dip Slightly but Remain Strong Year over Year
U.S. cattle markets took a breather this past week, with prices slipping in many regions. According to recent reports, 5-Area fed steer prices fell by about 2% compared to the previous week.
The dip in prices was also accompanied by a 10% drop in transactions. Still, prices remain 17–18% higher than the same period last year, indicating long-term strength.
Feeder cattle prices showed more variation. Lighter weight feeder cattle in states east of the Mississippi fell by up to 3.5%, while heavier steers saw price changes ranging from a 10% drop to more than an 8% increase.
Western states such as Nebraska experienced stronger gains, showing regional strength in the market.
Despite the weekly dip, wholesale beef prices are rising sharply, with the weekly choice cutout value nearing $400/cwt. The choice-select spread is also 32% smaller than last year, driven by tight supplies and continued strong consumer demand.
At the retail level, beef prices showed mixed results in May. While roast and steak prices dropped, ground beef prices increased. Even with small monthly changes, retail beef remains more expensive than it was a year ago.
Grain markets remained stable following today’s acreage and grain stocks reports, with results matching pre-report estimates. Lower feed costs continue to support feeder margins, especially in a tight supply environment.
Looking ahead, macroeconomic risks and potential feed cost spikes are factors to monitor. Livestock health concerns, including screwworm outbreaks, also remain on the radar. Still, “market fundamentals continue to point to strong prices year-over-year.”
Feeder cattle prices may soften in the fall as weaned calves enter auction barns, but declines are expected to be limited due to ongoing supply constraints.