Marketing-Communications
Increased U.S. beef production and lower cattle prices are reversing the trend of recent years, where beef exports decreased as record high prices rationed demand in both domestic and international markets.
Cattle prices continue to plummet, falling below the dollar mark on Tuesday.
It is abnormal for live cattle prices to continue finding new summer lows this late in the summer.
Lower finished cattle prices continue to produce red ink for most cattle feeders which continues to drain equity.
High feedlot placements in the spring might mean more beef in cold storage and lower cattle prices.
The questions abound if prices are going to continue to strengthen or if they will falter heading into the fall of the year. The answer is different depending on the weight class and management provided to those animals.
The average price of choice beef at retail was $6.20 per pound during June.
The market is well supported at the current cash price levels even though live cattle futures continue to fall.
Live cattle prices are hitting the summer wall and hitting it hard.
The latest beef and cattle trade data shows a mixed bag of global market impacts. Total beef exports were down 5.3 percent in April compared to last year.
The key comparative advantages currently enjoyed by North America’s integrated industry include a strong trust and premium being placed on their grain-finished beef.
Beef demand unlikely to slip, but weights could fall amid heat.
Job growth has continued to drop the past few months, a sign that consumer beef demand could be in trouble.
Just 8% of U.S. pastures are in poor to very poor condition, according to USDA. It is a 2% improvement from last year.
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.
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.
The recent price pressure is not necessarily a bad thing as it may benefit packers and feedlots alike down the road.
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.
There were 491 million pounds of beef in cold storage at the end of February.
For the second week in a row, cattle and beef prices are sharply lower.
Downward slide in prices expected to ease, but still trending lower.
A K-State agricultural economist explains some of the reasons for current market trends.
The average retail price of choice beef during February was $5.986 per pound.
The calf market continued to strengthen this week as the demand for lightweight calves intensified.