Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Dr. Derrell Peel Looks at How Beef Market Impacts from COVID-19 Vary Widely

Mon, 06 Apr 2020 09:44:46 CDT

Dr. Derrell Peel Looks at How Beef Market Impacts from COVID-19 Vary Widely 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 Glenn Selk. Today, Dr. Peel examines the beef Market impacts from Covid-19.

Wholesale and retail beef markets have endured enormous upheaval since mid-March. Starting March 16, the surge in retail grocery buying put huge demands on retail supply chains resulting in dramatic and immediate spikes in wholesale beef prices. As shown in Table 1, the overall cutout jumped by nearly 19 percent in a matter of three days. Wholesale prices continued to push higher until March 23, peaking at $257.32 cwt., up 23.6 percent from March 13 levels. Since then, the cutout has dropped over 10 percent to $230.44/cwt. on April 3. It is not clear exactly where the boxed beef cutout will settle out in the coming days. At the same time, the demand for food service has dropped sharply leading to a diverse set of impacts on various wholesale beef cuts.

Table 2 shows the changes in weekly wholesale beef product prices since early March. Middle meats, which are dominated by restaurant demand, have dropped while end meats have surged on grocery demand. Prices for most steak items are lower including the tenderloin (189A), down 29 percent and ribeye (112A), down 7.7 percent since early March. Prices for the Petite tender (114F), a popular restaurant item, is down over 32 percent.   Short ribs (123A), a popular export item, are down 47 percent in price. Prices for loin strips (180), a popular summer grilling steak that is normally increasing seasonally at this time, is up over 22 percent. Top sirloin (184), is a multi-purpose steak is used in both restaurants and at retail grocery, is priced nearly 13 percent higher.   

At the same time, end meat prices, which are typically declining into the summer, are higher driven by grocery demand for value cuts and ground beef. Prices are sharply stronger for the shoulder clod (114A), up 49 percent and Chuck rolls (116A), up 32 percent along with Round items including the Top round (168), up 33 percent; outside round (171B), up 47 percent and eye of round (171C), up 25 percent.        

Fast food restaurant demand is down, despite drive-thru service remaining open, resulting in less ground beef demand. Prices of fresh lean 50 percent trimmings, mostly used for food service ground beef demand are down 50 percent to the lowest level in 18 years.   Fresh 90 percent lean trimming prices are up nearly 8 percent on indications that imported lean trimmings dropped in March. Grocery demand for ground beef is up as noted above; however, ground beef at retail more commonly uses chuck and round items rather than trimmings.


Dr. Derrell Peel Looks at How Beef Market Impacts from COVID-19 Vary Widely


WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Oklahoma Grain Elevator Cash Bids as of 2:00 p.m. Monday, June 1  Mon, 01 Jun 2020 15:20:49 CDT
  • Oklahoma Wheat Harvest Begins Across Southern and Central Oklahoma All at the Same Time  Mon, 01 Jun 2020 15:19:42 CDT
  • Farmers Canít Count on Exports. We Must Count on Ethanol, Says ACGF Chairman  Mon, 01 Jun 2020 13:58:50 CDT
  • OCA Webinar on the COOP Model for Beef Packing and Processing--Register Now   Mon, 01 Jun 2020 13:55:59 CDT
  • Registration is Open for the 68th Annual Oklahoma Cattlemenís Association Convention and Trade Show  Mon, 01 Jun 2020 12:51:49 CDT
  • USDA Launches 2020 Feds Feed Families Nationwide Food Drive  Mon, 01 Jun 2020 12:50:09 CDT
  • EPA Limits Statesí Water Quality Powers  Mon, 01 Jun 2020 12:49:07 CDT
  • Dr. Derrell Peel on How The Beef Markets can Move Past Disruptions   Mon, 01 Jun 2020 11:56:33 CDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma City Farm Show KIS FUTURES, INC. Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment AFR Insurance Stillwater Milling Oklahoma Cattlemen's Association

    Our Road to Rural Prosperity sponsors!


    Search OklahomaFarmReport.com

    © 2008-2020 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.