Slaughter Levels Slow, Cash Prices Suffer
Labor issues continue to plague the packing industry with this week’s slaughter volume lighter than anticipated. Worker absenteeism due to COVID has hindered packers’ ability to run full throttle and cash prices suffered.
Packers were said to be very selective in the cash trade, with prices in the North at $137 to $138 per cwt., and dressed trade at $218 per cwt., $2 lower than last week. Sales in the South were mostly at $135 to $137 per cwt., $1 to $2 lower.
The Omicron variant of the coronavirus has spread through workers in the packing industry, and slaughter levels are running about 6,000 head per day short of where analysts thought it would be at the beginning of the month. Slaughter capacity has not been an issue.
USDA’s wholesale beef prices are trending higher. Friday’s Choice boxed beef closed at $284.31 per cwt., $12.49 per cwt. higher than the previous week. Select boxed beef closed Friday at $273.97 per cwt., $13.87 per cwt. higher.
Weekly cattle slaughter was estimated at 621,000 head, or 31,000 head lower than the same week a year ago. Year-to-date total is 1.241 million head, down 9.9% compared to 2021.
