Cull Cow and Beef Prices Close 2023 on an Upbeat Note

By Andi Anderson

The conclusion of 2023 saw a notable improvement in cull cow and bull prices, providing a positive note in the beef market. After reaching $100 per cwt in early August, 90 percent lean cutter grade cows experienced a decline through the Fall, hitting $78 per cwt in early December. However, these grade cows closed the year at $85.86 per cwt, signaling a rebound. Other grades, including premium white, breaker, and boner grades, also witnessed an increase, reaching their highest levels in over a month.  

The cow-beef cutout, finishing the year at $202 per cwt, exhibited a slight uptick from the previous week. Comparing to January 2023, the cutout is set to begin 2024 at nearly $10 per cwt higher, starting last year at $194 per cwt.  

The overall decline in fed cattle prices had an impact on cull cow prices, especially during the Fall season when large numbers of cull cattle are sent to the market. Although weekly beef cow slaughter reached its yearly peak of 83,200 head in mid-November, the combined effect of reduced dairy culling and a decline in 2023 beef cow slaughter by 11 percent from 2022 resulted in a total decline of 5.7 percent for the year. 

Looking ahead, the start of the year may witness a relative increase in culling in January and February, considering the usual seasonality of large weekly cow slaughter early in the year. Despite more cattle on feed compared to the previous year and record-high fed cattle weights, the overall decline in beef supplies is expected to continue. A winter storm anticipated in the coming weeks may impact production and consumer beef purchases, introducing some volatility to the market. 

The beef market anticipates a normal seasonal increase in cull cow prices in 2024, potentially reaching even higher price levels than the previous year. A recent decline in the Choice beef cutout and a departure from historically high Choice-Select spreads, cattle prices, from calves to fed cattle, have generally begun the new year on a positive note. 

Photo Credit: istock-simplycreativephotography