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 looks at the uptick in cattle prices in recent days.
"Beef and cattle prices bounced back sharply in the past ten days. Choice boxed beef ended last week at $218.56/cwt., up $14.82cwt. from the recent low on May 6. Wholesale prices were generally higher last week for end meats (round and chuck) as well as middle meats (rib and loin). Five-market fed cattle prices ended the week of May 13 at $132.64/cwt., up $14.61/cwt. from the May 4 low. Auction prices for feeder cattle in Oklahoma were mostly up four to six percent in the past one to two weeks.
"Price improvement has occurred despite continuing year over year increases in beef production. For the week ending May 14, estimated beef production was up 6.1 percent year over year, contributing to a ten week average increase of 5.3 percent compared to the same period last year. Cattle slaughter was estimated at 601 thousand head last week, up 5.8 percent year over year. Average cattle slaughter has been 4.1 percent higher than last year for the last ten weeks. Carcass weights are still up year over year but have decreased dramatically in recent weeks. Average steer carcass weights were 868 pounds last week, down 26 pounds from early March and just 3 pounds heavier than the same period last year.
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