Beef Market Update: The price of meat, consumers’ pocketbooks, and strong demand

We’re midway through August, and the cattle market is beginning to pick up on both sides of the border.

Beef market prices are continuing to improve, but questions surrounding whether demand can sustain a higher cutout are looming around as well.

This week’s episode of the Beef Market Update takes a look at all of this, as well as feeder cattle imports into Canada, and beef export numbers for Canada.

Listen to the full conversation, or keep scrolling for a brief summary:

SUMMARY:

  • In the U.S. this week markets were $1-2 lower at the close
  • The cutout – finally we got some action on the wholesale price. So the choice cut out last night closed at $314
  • The smaller kills we’ve been seeing in the U.S. finally led to this strengthening. It’s just taken a little longer than most people thought
  • Really good for the interest of beef sales ahead of Labour Day
  • The prices on the fed market in Western Canada was pretty much steady — $388-$393 delivered
  • Will demand hold through 2023 and into 2024? As consumers continue to feel the pinch in terms of higher interest rates, and basically all of their costs rising
  • Cattle on Feed report coming from the U.S. later today
  • We’ve got the trade expectations for the August 1 U.S. report on feed — the futures have basically prepared for smaller numbers, smaller supplies coming out of the report
  • We’re going to start placing cattle now, instead of a condensed fall run, we’re going to have a fall run that goes from June to December
  • Japan has really been struggling — U.S. trade is also down into Japan, alongside Canada
  • We need to look at the whole economic picture of where beef is moving from and to remember we’ve got some of the highest price beef in world right now in North America

Wake up with RealAgriculture

Subscribe to our daily newsletters to keep you up-to-date with our latest coverage every morning.

Wake up with RealAgriculture