Page 19 - MWC 10-5-2023s

at wholesale will certainly shows that there is gener- The Midwest Cattleman · October 5, 2023 · P19
push the retail ground beef al price support at $90 per
price higher pulling more cwt. for cutter cows and $85
cows and bulls to be slaugh- per cwt. for slaughter cows.
tered (see Figure 1). Fur- Higher and stronger ground
ther, meat processing plants beef prices and boxed beef
that have a ground beef line cutter cow cutout will only
may be able to soften some keep these prices high or
of the impacts of higher fed increase them into the fall.
cattle margins. These seasonally higher
prices should continue to
Boxed Beef Cutter Cow impact the beef cow slaugh-
Cutout ter rate.
There is a seasonal inver-
sion in the boxed beef cut-
ter cow price (see Figure 2). continued on page 20
Seasonally prices normally
climb till May/June and then
Missouri Opportunity Sale
decline through December
as more cows come to town. Missouri Opportunity Sale
In 2022, this seasonal trend
was inverted as the market
high came between January
and April and then began to
decline throughout the year. Sunday, December 3, 2023 • MSF Fairgrounds in Sedalia, Mo • Noon CTS
Contrast that with 2023, we
followed the same season-
al pattern from January to OFFERING OVER 70 LOTS
Frontier
May/June – gradually in-
174E
Jalapeno 973E973E
creasing albeit at nominal- Frontier 174E Jalapeno
C&L RR KJ
ly higher values. But rather TH TH C&L RR KJ
than peaking and coming
back down prices have con-
tinued on a steady upward
trajectory reaching $243 per
cwt. For perspective, this is
what a 600-900 lb. Choice
carcass was trading at in
September 2022. Important
to understand that this cut-
out value is calculated and
consists of several subprod-
ucts each continuing at a
fixed weight/proportion of
the carcass. That allows us Power Surge Emblazon
Power Surge 90249024
BOYD
LJR/MSU
to determine what is driv- BOYD LJR/MSU Emblazon 392e392e
ing that value higher. This
higher price almost entirely
contributed to strong prices
for lean beef – approximate-
ly 85% to be exact. This is
in line with the higher re-
tail ground beef prices. The
higher the cutout, the great-
er incentive to harvest more
cows, thus limiting herd
growth.

Cutter Cow and
Slaughter Cow Prices BULLS • SPRING PAIR SPLITS • FALL PAIRS • SPRING BRED HEIFERS
Cutter cow and slaugh-
ter cow prices have likewise FALL OPEN HEIFERS • SHOW HEIFER PROSPECTS • EMBRYOS
remained high (see Figures
3-4). Both are significantly SPONSORED BY THE MISSOURI HEREFORD ASSOCIATION
higher than both the 5-year
average and 2022. National
direct live cutter cow prices ANNUAL MEMBERSHIP MEETING & AWARDS BANQUET 5 P.M. DECEMBER 2, 2023
were trading at $94 per cwt. MATT REYNOLDS • SECRETARY/ TREASURER • 660.676.3788 • REYNOLDSCATTLE@CVALLEY.NET
compared to $74 per cwt. a
year ago and $54 per cwt. on
average between 2017-2021. WWW.MOHEREFORDS.ORG • LIKE US ON FACEBOOK
The seasonal pattern also