US Beef Prices Drop Sharply as Seasonal Slump Hits Feedlot Margins

U.S. beef steer prices continued a steep decline in late May, with the five‑Area negotiated average falling to $238.59 per cwt, about $24 lower than the recent peak. Wholesale Choice carcass cutout values also slipped, reaching $371.21, $12 less than the week before. The price drop, combined with rising feed and fuel costs, has pushed many feedlots into negative margins.

The upcoming Cattle on Feed report is expected to show that a large share of the cattle inventory has been on feed for 150 days or more, indicating most animals are near market readiness despite a modest overall inventory. Harvest estimates fell to 525,000 head, slightly below the prior week and well below the previous year’s level.

Pork markets showed modest improvement, with the pork cutout value breaking the $100 barrier at $102.21 and rising to $103.50 later in the week. Lean hog futures advanced, and export sales for the July 10‑16 period increased 33% week‑over‑week to 28,800 metric tons, driven primarily by shipments to Mexico.