A lot is happening in the beef business right now, but we’re going to start off this week’s edition of the Beef Market Update with what is top of mind for many producers: revenue.
Anne Wasko of the Gateway Livestock Exchange says the U.S. cash trade has been steady this week, but it follows on the heels of a good $3-4 jump.
“In the south we’re getting $120-121 reported to close off this week, and in the north $196 dressed,” Wasko says. “We’re still looking at this cutout — the wholesale price still is very strong. It picked up 6 dollars draft this week to $276 at the close last night on the choice. That follows last weeks $20 jump. So we’ve continued to see solid wholesale pricing. The prices are impressive, to say the least.”
As Wasko adds, it also continues to reflect how far back these fed cattle or the live cattle prices are lagging. We may be up, but the wholesale price does leapfrog over the live cattle prices.
In Western Canada, the news tends to stay positive as well. Wasko says “after being pretty negative, the cash market is up $4-5 better this week” with asking prices reaching $260 delivered. The same thing is happening in Ontario, with dressed prices up $5 as well.
Many are asking the question when it comes to the price on the cutout: is that unseasonal? We’re past Easter, but we’re not quite at those May long weekend numbers yet. The short answer is no, says Wasko, as many are starting to buy for Memorial Day.
“That four to six week lag is often where you see a lot of that activity, so this is definitely what you’d describe as seasonal strength,” Wasko explains.
Check out the full Beef Market Update with Anne Wasko and Shaun Haney, here:
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