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Job growth has continued to drop the past few months, a sign that consumer beef demand could be in trouble.
Beef and cattle prices bounced back sharply in the past ten days.
Market ready cattle prices were spurred by a relatively strong futures market and a strengthening in wholesale beef prices.
The Choice cutout was $212.05 down $0.45 from Thursday and down $8.45 from last Friday, while fed cattle trade was $2 to $3 lower than a week ago on a live basis.
The recent price pressure is not necessarily a bad thing as it may benefit packers and feedlots alike down the road.
Foreign demand for U.S. beef was down 13.2% in 2015 and has been down in two of the first three months of 2016.
In a high or low cattle market environment, capturing the most pounds per calf affects a producer’s bottom line, said a Texas A&M AgriLife Extension Service economist.
Producers are going to have to be a little more savvy in marketing calves and feeder cattle since forward pricing opportunities appear limited.
There was little change in finished cattle prices this week which likely has feedlot managers sweating bullets.
More beef and lower prices should be positive for U.S. international trade.