By Andi Anderson
As of mid-October 2024, fed cattle prices are on the rise, climbing gradually after a market correction that began in late July.
Prices initially fell from a high of $197.09 to $181.18 per hundredweight (cwt), but over the past four weeks, they have bounced back to $186.89. By the week ending October 4, prices were in the $188 range.
Fed cattle prices typically increase seasonally in the fall, with a 10-year seasonal price index suggesting an average 5% rise from September to November.
Although last fall was an exception with declining prices, it's not uncommon for prices to peak during this season. However, for this year to hit its high, the pace of price increase would need to accelerate.
Despite larger beef production and cutout values at or below last year's level, cattle prices continue to inch upward. Over the past nine weeks, fed steer and heifer slaughter has been 1.2% higher than last year, with steer weights reaching record highs.
Federally inspected dressed steer weights hit 948 pounds for the week ending October 4 and are expected to peak later in the fall. Heifer weights are also near record levels, just 2 pounds shy of a new high.
The increased supply of fed cattle and heavier weights have resulted in higher beef production for the last nine consecutive weeks, offsetting the decline in beef and dairy cow production.
Additionally, beef quality has improved, with nearly 73% of beef graded in early October classified as Choice, a 2.5% increase over last year. A larger percentage of beef has been graded as Choice over the past nine weeks, and Prime beef supplies are also higher than a year ago.
These increased supplies of high-quality beef are likely keeping a lid on cutout values, making the gradual rise in fed cattle prices even more notable.
As the season progresses, cattle prices are expected to continue rising, though the current pace remains modest amid strong beef supplies.
Photo Credit: gettyimages-jessicahyde
Categories: Ohio, Livestock, Beef Cattle