Strong Beef Demand Helping Offset Rising Supplies of Cattle in PipelineThu, 06 Sep 2018 08:40:13 CDT
There are more cattle and, as a result, more beef going through the supply pipeline here in early part of the second half of 2018. If all things were equal- bigger supplies of beef would likely mean lower beef prices- and back up to the live cattle part of the pipeline- lower cattle prices. But Dr. Glynn Tonsor, Extension Livestock Marketing Specialist at Kansas State University, says things are not exactly the same as a year ago.
The difference is stronger beef demand. "From the same period in 2017 at the end of August- choice cutoff was $191- we are 18 bucks above where we were at this point last year...we have higher supplies yet we have prices above what we have expected- that only happens with strong demand."
Tonsor adds that demand numbers shared at the recent summer Cattle Industry Business Meeting in Denver showed "through June, beef demand was up 20% from where we were in January 2012" and Dr. Tonsor says that May of this year was the highest of any month in that time span when it comes to beef demand.
For cattle prices, that means "cattle prices would not be as high as we are witnessing if we did not have that domestic demand strength that I am referring to."
To hear Dr. Tonsor's current take on demand for beef and as a result for cattle prices- click on the LISTEN BAR below to check out today's Beef Buzz with Glynn Tonsor and Ron Hays.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is 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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