Agricultural News
Higher Boxed Beef Prices- Do They Reflect Improving Beef Demand?
Thu, 01 Apr 2010 5:57:05 CDT
It has been a robust cattle market over the last thirty to forty five days- and OSU Extension Livestock Market Economist Dr. Derrell Peel believes that we could be close to a seasonal peak for both slaughter cattle, as well as the yearling, stockers and calves. We talk about this today with Dr. Peel on our Beef Buzz.
We have seen a seasonal move higher in recent weeks, which has been fueled by fewer pounds of beef produced this winter due to weather that slowed performance in parts of our southern plains feedlot region as well as tighter supplies of available cattle that has been predicted for quite some time by the cattle inventory numbers. With a rising boxed beef price, that move higher could also have a demand factor imbedded in it as well.
Dr. Peel says that the stronger boxed beef prices may reflect better beef demand, or at least the willingness to pay a little more to secure the supplies that seem to be successfully moving through the beef pipeline. Add to that an up trend for beef exports- in both volume and in value- and we have cash cattle prices that are making feedlot operators money, even as hedgersedge.com reports that beef packing plants are making as much as $50 per head.
The Beef Buzz is a regular feature heard on radio stations around the state on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the listen bar below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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