Big Supplies Lower Prices

Big Supplies Lower Prices

By mid-September, steady improvement in cattle harvest levels over the summer had nearly erased the backlog of cattle created at the onset of the COVID-19 pandemic. With beef packers finding steady profit margins north of $300 per head, cattle prices rallied for seven weeks in July and August.

Increasing production, however, brought the eventual pressure on prices. In September, USDA revised its projections for beef production up 23 million pounds compared with August. That would leave total 2020 beef production at just 0.4% lower than 2019 — despite the disruption.

Smaller 2020 slaughter numbers have been offset by heavier carcass weights, a lingering effect of the cattle stranded in feedyards. The final week of August saw steer carcass weights average 916 lb., up 32 lb. from the same week in 2019.

USDA projects per-capita beef consumption to be 58.2 lb. in 2020, up slightly. But the supply pressure will tend to subside throughout the fall. Seasonally, beef demand improves approaching the holidays, which will support prices in the $110 to $117 per cwt range.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.