Mondays, Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist, offers his economic analysis of the beef cattle industry. This analysis is a part of the weekly series known as the "Cow Calf Corner" published electronically by Dr. Peel and Dr. Glenn Selk. Today, Dr. Peel talks about the 2021 cattle market beginning slate.

The cattle industry, like everyone else, is more than ready to move past 2020 and into a new year. While the industry will start the year with a new slate, there are numerous factors in place that will shape markets for, at least, the first few months of 2021. Cattle markets face a mix of opportunities and challenges as the New Year begins.

The pandemic continues and seems likely to face the worst conditions to date in the next few months. For cattle markets, this means a continuation of a limited food service sector and more challenges in food product markets. Boxed beef prices at the end of 2020 were just about exactly equal to one year earlier but that obscures the continuing variation in food service and retail grocery product demands. Primal chuck and round prices were higher year over year along with ribs, while loins were down. Food service dependent products continue to be noticeably affected by limited demand with, for example, prices for tenderloin down 14 percent; Petite tender prices down 25 percent and brisket prices down four percent, while strip loin steaks (popular in retail grocery) are up 12 percent year over year. Overall beef demand has been, and continues, strong but the challenges to food supply chains will continue.