by Kim Souza (ksouza@talkbusiness.net)

High live cattle prices are pushing beef production down and pushing retail beef prices higher during the summer grilling season. Cattle prices were at an all-time high at mid-year, according to Derrell Peel, livestock marketing specialist with Oklahoma State University Extension.

Peel reports fed steers averaged $195.81 per hundredweight, with large steers priced at $255.41 per hundredweight at auctions before July 4. He said high live weight prices have pushed beef production down 1.6% from the same six-month period a year ago. Steer slaughter is down 1.7% and heifer slaughter is down 1.5% from a year ago. Peel said higher steer and heifer carcass weights are more than offsetting the modest decreases in slaughter.

Wholesale choice boxed beef prices are equal to one year ago at $328.96 in early July. Peel said wholesale prices for popular grilling steaks are strong at midyear increasing the demand for ground beef and pushing those prices to record levels. Peel said the 83.3% lean ground beef hit a wholesale record price of $3.26 per pound in early July.

Live cattle prices at an all-time high

by Kim Souza (ksouza@talkbusiness.net)

Beef prices typically increase following Memorial Day with more summer grilling demand but prices this year are trending higher than a year ago, according to Derrell Peel, livestock marketing specialist with Oklahoma State University Extension.

Peel said the seasonal increase in boxed beef cutout prices is higher than usual this year, with the weekly average “Choice” boxed beef prices rising 63.8% from early January to early June. Prices were higher across the board with loin cuts increasing 93%, rib meat up 60%, round rising nearly 44% and chuck cuts up 39% from the same period last year.

Year-to-date, values range from a 17% increase in rib meat for cuts like cowboy steaks and prime rib roasts to a 110.8% rise in short plate meat which includes skirt steak used in fajita and short ribs. Peel said the slight decrease in prices toward the end of June do not indicate weakening demand, but rather that food service operators had largely replenished their supply by early June.

https://talkbusiness.net/2021/07/sizzling-summer-beef-demand-pushes-prices-higher/

Wholesale “choice” boxed beef prices are up 40.7% through the end of June, compared to a year ago. (photo courtesy of Oklahoma State University Extension)