For beef cattle producers knowing the current value of cattle sold live by the pound, referred to as on the hoof is key to determining potential profitability. But for those not actively selling fed cattle to packing plants, the live cattle market can seem abstract and complex. This article breaks down the factors that influence the price per pound that beef cattle fetch on the hoof.
What Does “On the Hoof” Mean?
Cattle are sold “on the hoof” when they are sold live direct from a ranch or feedlot, by the pound. This differs from meat sold at a grocery store or restaurant, where beef is sold per pound after processing.
On the hoof sales happen through two main avenues:
- Local sale barns where producers bring cattle to auction
- Direct sales from feedlots to meat packing plants
The price per pound received when selling live cattle on the hoof represents the gross income cattle producers receive before expenses. Knowing current live cattle prices helps producers evaluate profit potential.
What Impacts the Live Cattle Market?
Many dynamic factors influence the per pound price that cattle will bring when sold on the hoof
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Supply and demand – When cattle numbers are high, prices tend to decline. When supply is low, prices increase.
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Feed costs – As the main input cost for cattle feeding, higher feed costs lead to higher breakeven prices needed by feedlots.
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Packing plant capacity – Limited processing capacity can bottleneck cattle flow and suppress live prices
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Consumer demand – Strong consumer demand for beef products allows packers to pay more for live cattle.
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Exports – Export demand adds value to live cattle pricing when shipments of US beef are up.
As a result, live cattle prices fluctuate week to week and season to season based on these changing market forces. USDA Market News provides up to date reporting on live cattle auction and contract prices.
USDA Live Cattle Price Reports
The United States Department of Agriculture (USDA) Agricultural Marketing Service publishes weekly national summaries of prices and trends for live cattle and boxed beef. These market reports provide benchmark pricing that buyers and sellers utilize in trade negotiations.
For live cattle, the USDA reports:
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5 Area Weekly Weighted Average Direct Slaughter Cattle – provides weighted average prices on a live weight basis for direct sales of finished cattle to packing plants in 5 major feeding regions.
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National Weekly Direct Slaughter Cattle – Negotiated – reports the range of prices and weighted average for negotiated live purchases in regions where enough data is reported.
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National Weekly Direct Slaughter Cattle – Formula – provides weighted averages and ranges for formula cattle sales. Formula prices are based on the cash market from the prior week or future weeks.
These national weekly reports summarize data gathered through mandatory price reporting of major packers. The reports provide a snapshot of national market trends.
Checking Local Live Cattle Prices
While the USDA reports provide national benchmarks, local prices at specific auction barns may differ based on regional demand. Producers should check prices at their nearest livestock auction to gauge local market value.
Sale barns publish their price reports online or in agriculture newspapers. Livestock auction sites like the Cattle Range Mobile App allow searching local sale results. Online price trend graphs from farms.com and other agriculture sites can also help analyze local pricing.
Average Live Cattle Price per Pound
Based on recent USDA market reports, here are national average live cattle prices per 100 pounds (cwt) over the past several months:
- January 2024 – $153.59/cwt
- February 2024 – $157.35/cwt
- March 2024 – $164.15/cwt
- April 2024 – $169.59/cwt
That equates to an average live weight price per pound of:
- January 2024 – $1.54/lb
- February 2024 – $1.57/lb
- March 2024 – $1.64/lb
- April 2024 – $1.70/lb
So far in 2024, live cattle have sold between $1.54 to $1.70 per pound on average. But each week sees a range in high and low prices based on cattle characteristics and market influences.
In the week ending April 26, 2024, the 5 Area weekly report showed most live cattle selling between $1.82 to $1.83 per pound. But within that week prices ranged from a low of $1.70/lb to a high of $1.88/lb.
Seasonal Trends in Live Cattle Pricing
Live cattle pricing tends to follow seasonal trends through the year:
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Winter – Prices are typically lowest in January and February at the start of the year. High beef supply exerts downward pressure.
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Spring – Prices strengthen through March, April and May as supply tightens and grilling season demand rises.
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Summer – June through August are peak grilling months and prices reach seasonal peaks.
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Fall – Prices start to decline in September and October as supply increases again after calving.
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Holiday demand – Prices may spike around major holidays like 4th of July and Christmas when beef demand jumps.
Understanding these seasonal price patterns and monitoring current market reports helps cattle producers better market and budget for profitability.
The Takeaway
Live cattle prices fluctuate weekly and seasonally based on a variety of influencing factors. While national average pricing tends to run $1.54 to $1.70/lb, local market prices can vary. Producers should utilize USDA reports and regional sale data to benchmark the value of their cattle on the hoof. Tracking live cattle markets provides key insight for budgeting and maximizing profit.
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FAQ
How much is a 1200 lb steer worth?
What is the average price of beef hanging weight?
How much is a 900 lb steer worth?
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Steers-Cash
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Apr. 19
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Change
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600-700 lbs.
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$166.01
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+ $1.26
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700-800 lbs.
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$150.19
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– $2.05
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800-900 lbs.
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$137.53
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– $5.16
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How much does a 1400 lb steer cost?
How much does beef cost per pound on the hoof?
Processing fees are also a significant factor in determining the cost of beef per pound on the hoof. These fees can include everything from kill fees to packaging costs, and they can add up quickly. For example, kill fees can range from $55 to $65 per animal, while hamburger trimming and grinding fees can be around $.25 per pound.
How much does it cost to slaughter beef?
These fees can include everything from kill fees to packaging costs, and they can add up quickly. For example, kill fees can range from $55 to $65 per animal, while hamburger trimming and grinding fees can be around $.25 per pound. If you want your beef made into patties, you can expect to pay even more.
What does beef on the hoof mean?
When referring to beef on the hoof, it means the live weight of the animal before it is processed into meat. This weight includes everything, from bones and organs to muscle and fat.
How much trimmed beef is a steer?
From that you will get about 65% of the carcass weight, or roughly 490 pounds, as boneless, trimmed beef. If you look at that as a percentage of the live weight of the steer you started with, it is approximately 40% of the live weight. Remaining components of the weight are fat trim and bone.