Cull cows and finished steers decline, while bull calves relatively steady.
The beef packing industry continues to operate at 98% capacity compared to this time in 2019. Finished steer weights are 826 lb, 2.6% higher than last year, with total beef production down 3.8%. According to Dr. Derrell Peel, OK State Livestock Marketing Specialist “Weekly beef production is likely to exceed year earlier levels for the third quarter and perhaps for the balance of the year. Third quarter beef production is forecast to be nearly 6 percent higher year over year. Annual beef production for 2020 is forecast to be slightly higher year over year and a new record level at 27.3 billion pounds.” With increased production, consumer demand is key to supporting prices or at least keeping the decline moderate. Restaurants are slowly opening and this will help drive demand. It’s interesting for me to see how restaurants have been innovative in seating with outside tents and special meal options meant to be eaten at a park or home. Diners may still be hesitant to eat inside even if available.
For complete price information go to Livestock Update June-19-2020.