There were big numbers in the beef market this past month for pricing, carcass weights, and harvest rates. Anne Wasko of the Gateway Livestock Exchange breaks it down for us in this Beef Market Update.

As Wasko explains, the U.S. cash side of the market is a little higher again this week, landing at $114/cwt in the south and $178-180/cwt delivered in the north.

Wasko thinks the story there is still from the cutout price, as all through January it saw big moves, and that there will be more volatility in wholesale beef prices — did we price ourselves out of the market, she wonders.

Wasko thinks it’s not really a supply issue either — both the U.S. and Canada saw a solid month for beef production in January.

Harvest rates in both countries were big in January. Year-to-date numbers in the U.S. were up nine per cent and in Canada for January, year-to-date is up 15 per cent on all cattle and up 19 per cent on fed cattle slaughter. But the larger kills and those record heavy carcass weights — 47 pounds heavier than a year ago — means that in January, Canada added 20 per cent bigger beef tonnage.

You might be wondering where all that beef went? “Retail demand continues to be solid and we don’t have trade data yet, but again, as we’ve talked all through the end of last year, we continue to see trade as the strong driver for both U.S. and Canadian demand,” says Wasko. Export demand is strong too.

The inventory report out of the U.S. held one surprise for Wasko: a declining beef cow herd that might affect supply later on. Dry conditions might exacerbate that situation, especially if drought migrates into the western corn belt and western plains. Slaughter numbers will be an indicator later on, says Wasko.

Listen into the full conversation below or download the podcast for later:

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preference Center

Necessary

Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag
__cfduid

Marketing

Measuring interactions with the ads on the domain.

__gads,fsk_ut_2317
IDE

Statistics

These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.

_ga,_gid,_gat,_cb,_chartbeat2,_chartbeat4
_ga,_gid
metrics_token

Preferences

Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp