Agricultural News
Purdue Economists Predicts Five-Dollar Beef
Mon, 25 Apr 2011 17:27:00 CDT
Purdue University Extension economist Dr. Chris Hurt says cattle prices have had a remarkable run to the upside with finished steers reaching the low $120s per hundredweight in early April. But, there are signs those lofty prices will not be maintained into the spring and summer months. End-of-summer lows could be in the $110 to $112 range. If drought forces cow liquidation, summer prices could be even lower.
Hurt says he thinks retail beef prices probably have substantial increases still to come this spring and summer, moving toward $5.00 per pound at times as retailers pass along the much higher prices of wholesale beef from this spring. According to Hurt, the combination of higher gasoline and beef costs have the potential to force adjustments in consumer behavior. For the entire coming year, the Purdue economist expects, retail beef prices to average $4.87 per pound, up 11 percent from last year.
Hurt says, overall, much higher cattle prices than historic norms are expected in coming years. Producers should secure feed supplies for this summer and continue to manage margin risks very closely.
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