Usually, readers of In The Cattle Markets want higher prices because we are thinking about selling cattle. In this case, our audience is interested in lower prices, because they are buying.
Memphis Meats, Inc. and the North American Meat Institute have sent a joint letter to the White House regarding whether FDA or USDA should regulate lab-grown meat.
Beef packers and cattle feeders have either never heard the song “Meet in the Middle” by Diamond Rio or they do not believe it makes good business sense.
Despite early January media reports of an E. coli outbreak in Canada and the U.S. possibly linked to romaine lettuce, food safety news was not all bad.
Winter conditions may continue to provide support for cattle prices in the near term, but industry participants should not be surprised if prices falter before the spring market provides support.
The bright spot is that the price of a 900 pound steer is the same as the price of an 800 pound steer which provides incentive to keep feeding cattle and growing them larger.
Finished cattle continued trading steady for the fifth consecutive week. Early in this trend, one might say this was beneficial for cattle feeders as they were able to hold packers at bay and keep prices from falling.
A joint meeting on cell cultured meat or “lab-grown meat” could help direct labeling of the emerging alternative protein products, as well as address safety concerns.
Moving through the second half of 2018, the picture will become even clearer as the fall run of calves come to market and as producers continue to cull cows.
There is potential for the market to move higher, but it will be difficult for prices to exceed the price achieved during the early November time period.
