PUBLISHED THU, APR 6 2023
Attention all meat importers, from now on we will give you regular market reports of all proteins in a simple way, without pretending to be scientists and understanding that most of the people in this industry are not either. Hope you like it....
Today let's talk about the beef market: We need to be prepared for potentially rising prices in the marketplace. The recent increase in cattle prices has caused the negotiated fed cattle market to rise $8 to $10 per hundredweight (cwt) in just the last two weeks. As a result, there are not enough marketable cattle for the meatpackers to buy, which means they have to pay more to get them. This is causing the wholesale price of beef to rise as well.
One of the reasons for the price increase is that there are fewer cattle available for sale this year compared to last year. In addition, the harsh winter in the north has made it more difficult for farmers to raise cattle, resulting in lighter weights for the cattle being sold and less meat available.
The beef market is expected to remain bullish, which means prices are likely to continue to rise. While the futures market, where people trade contracts for future delivery of beef, is also rising but not as much as the cash market, where actual cattle are bought and sold. We think that whats happening is just the beginning of a long period of rising beef prices.
So if you're a U.S. beef importer, it's time to prepare for higher prices. Stay informed, monitor market trends and plan accordingly to ensure your business remains profitable.
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