The USDA Agricultural Marketing Service (AMS) said auction barns in Nebraska recorded sales of 500-600 lb. feeder steers of around $428 per cwt during the last week in June, up $74 per cwt. from the beginning of the year and $124 per cwt. compared to a year ago. Recent sales of live steers averaged nearly $231/cwt. compared to $198 per cwt. last year.
Both supply and demand factors have contributed to the record prices. On the supply side, fewer domestic calves combined with fewer imported calves from Mexico have resulted in fewer cattle available for placement and ultimately processing. The AMS reported cattle slaughter during the last week in June was down more than 8% compared to the same week a year ago. And the Daily Livestock Report noted that since the last week of April, fed cattle slaughter is down 7% compared to a year ago.
On the demand side, consumers have continued to buy beef despite higher retail prices. Plus, packer capacity has increased (i.e. Sustainable Beef in North Platte came online), meaning more packers are bidding for fewer animals.
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