Farms.com Home   News

Wholesale Beef Prices Turn Sharply Lower

Wholesale beef prices turn sharply lower
Beef prices typically experience a seasonal decline at the end of summer, but the decline in prices since August this year has been particularly steep, and the combination of abundant supplies and lower demand suggests cattle and beef prices could continue to decline. Cattle are remaining on feed longer and are currently being marketed at record-high weights, resulting in increased beef production this year despite the historically small cattle supplies. At the same time, beef demand is in the midst of its seasonal decline as attention shifts from grilling to roasting items. As a result, wholesale beef prices have declined steadily since late August, while the price premium that Choice beef typically receives over the Select grade is diminishing, reflecting current strong supplies of these higher graded cuts relative to previous periods.  Adding to the market pressures, beef exports are down from this time last year due to a strengthening U.S. dollar and softening demand for U.S. beef, resulting in larger-than-anticipated volumes to be consumed in the domestic market and the expectation for continued downward pressure on prices in the near term. This chart is from the October Livestock, Dairy, and Poultry report. 
 

Trending Video

Dr. Gaines & Dr. Borg: Soybean Meal Net Energy Higher in Commercial Settings

Video: Dr. Gaines & Dr. Borg: Soybean Meal Net Energy Higher in Commercial Settings

In this episode of The Swine Nutrition Blackbelt Podcast, Dr. Aaron Gaines and Dr. Bart Borg explore the differences in soybean meal net energy and productive energy in commercial swine diets versus book values and how this improved understanding impacts formulation strategies for nutritionists and economic considerations. Listen and watch!

“In terms of energy value of soybean meal on a dry matter basis, 95% is fairly common, however, we're seeing some corporate movement where companies have tested this for themselves, and they're moving up to 100%-110% of corn on a dry matter basis.” Dr. Aaron Gaines, PhD, Ani-Tek, LLC

“For nutritionists, with all this new information coming in, I would encourage them to do the extra work of the cost optimization after the formulation, because that’s really where the rubber meets the road.” Dr. Bart Borg, PhD, Passel Farms