Agricultural News
Hurricane Sandy, Tight Supplies Blamed for Boxed Beef Prices Backing Up
Thu, 01 Nov 2012 17:15:56 CDT
Prices closed in on $2 per pound in wholesale boxed beef trade this week, but couldn't make it over the hump. Prices pulled back sharply after nearing record highs last week.
Market watchers diverged in their views of what led to the pull back. Some analysts believe Hurricane Sandy played a part, delaying beef deliveries to wholesalers and retailers up and down the East Coast.
The choice beef cutout was flying high before the storm closing at $199.40 cwt last Wednesday and Thursday. That was six percent higher than last year. In the last two days, however, the cutout trade gave up all the gains from the week before on a quotation of $194.80 Wednesday afternoon. Select beef cutout traded $7.20 lower than just one week ago.
Other analysts think the break in beef prices was due to the wholesale prices moving too far too fast for the marketplace. Wholesale beef prices move counter-seasonally higher during September and October. October beef business tends to be soft as retailers feature ham and turkey for the holidays. Higher prices in the beef market seem to be reflective of tighter supplies of cattle.
Supplies of cattle available for slaughter are running about three percent lower than last year.
The Beef Buzz is a regular feature heard on radio stations around the region 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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