Record cattle prices, improved beef quality trends impact farmers

Looking across a longer time frame, the trends of fed cattle weights and beef quality grades over time are interesting. Technological advances in raising cattle have allowed the sector to produce more beef per head.

Last week, the five-area market weighted average fed steer price topped $220 per cwt for the first time on record. This was a $35 increase from a year ago and up $20 per cwt since the start of the year. The CME June Live Cattle futures contract closed above $213 per cwt on Monday, also a record high for that contract.

Looking across a longer time frame, the trends of fed cattle weights and beef quality grades over time are interesting. As shown on the dressed weight chart, fed cattle dressed weights have increased over time.

Technological advances in raising cattle have allowed the sector to produce more beef per head. The chart shows a few years of declining weights and seasonal patterns within years, but the general trend is increasing fed steer weights over time.