Agricultural News
Robust Market Demand Keeping Beef Prices on the Rise Despite Growing Production and Supply
Tue, 28 Mar 2017 14:17:07 CDT
No doubt that improving beef demand is staring us right in the face, so says Extension Beef Cattle Specialist Dr. Glynn Tonsor. He told Radio Oklahoma Ag Network Farm Director Ron Hays that prices have continued to rise in the wholesale boxed beef market since February 1st of this year, while increased beef production has stayed the course feeding a growing supply.
Tonsor reports that cut-out prices are up from $1.94 on February 1st at $2.22 and the select side has landed at $2.16 versus the $1.91 price from February.
"Those being up at a time when we're moving a lot more beef through the wholesale level is very, very encouraging," Tonsor said, citing specific numbers from the Livestock Marketing Information Center that project total beef supplies will rise almost 5 percent in the 1Q of 2017 relative to last year. "If you have that value of increase in beef production - that all guarantees beef demand is pretty robust at the moment."
The fact that beef stocks are not stacking up in the cold storage freezers, as production continues to run at full steam, is another good indication that demand is strong, says Tonsor. He attributes part of this situation's momentum to less pressure coming from competing meat markets than what was observed this time last year.
You can listen to Dr. Tonsor explain the current status and contributing factors of the beef market's unexpected demand strength with Hays, on today's Beef Buzz.
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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