Beef prices may back off as cattle prices increase

 

Jeff Swenson, Wisconsin State Farmer

Sep 3, 2021 

 

Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.

 

Bids for fed cattle at auction markets this week are mostly steady. Packers weren’t chasing additional cattle in the cash market early, however. A new month means contracted cattle are going to fill some capacity this week. Last week’s harvest estimate of 651,000 was 14,000 head lower than the previous week.

 

Wholesale beef prices are coming down, although still higher than a year ago. The Choice carcass cutout value has been lower for four consecutive days as of September 1, as grilling season turns to tailgating and football parties. There is potential for beef prices to back off as cattle prices increase.

 

A disappointing August jobs report and extended unemployment benefits ending may impact beef demand. Retailers have been reluctant to feature beef as the higher cost has brought on tighter margins for them.

 

A recent Rabobank report says the backlog of cattle has finally been cleared and the outlook for cow calf and feedlot operators is positive. Canada reported a 1.7 percent drop in beef cow numbers, furthering evidence of lower cattle supplies ahead.

 

Pork prices fall ...

 

Market lamb supplies to tighten in 2022 ... 

 

Much needed rain aids crops ...

 

State auction markets remain steady ...

 

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https://www.wisfarmer.com/story/news/2021/09/03/beef-prices-may-back-off-cattle-prices-increase/5688866001/