Source: Rita Jane Gabbett, MEATINGPLACE, 11/25/16


Lower cattle prices have begun to spill over into the retail price market, according to USDA’s latest Livestock, Dairy and Poultry Outlook report.

The retail Choice beef price in September, 2016 was $5.87 per pound, about 1 percent lower than August and 6 percent lower than 2015. Retail prices have been known to show a delayed response to changes in cattle and wholesale beef prices.

October cattle prices were lower relative to September and last year. Weekly average fed cattle prices declined during the month, averaging about $100 per hundredweight (cwt) compared to $131 in 2015. However, prices in early November have averaged above $100.

Medium-frame feeder steers in Oklahoma City averaged $123.50 cwt in October, down 8 percent from September, and 35 percent from the same period last year.

Cutter-cow prices have also declined, with prices falling to the low-$60’s per cwt in late October.

Given the higher 2017 beef production forecast and the large amount of beef currently held in cold storage, prices are likely to remain under pressure, according to USDA.

Beef production in 2017 is forecast to be just over 4 percent higher year over year compared to last month, when it was under 4 percent higher.

USDA lowered its fed cattle prices for 2017 in its November report from last month to an expected average of $102 to $110 per cwt.

For more stories, go to www.meatingplace.com.