Depending on which side of the gate you’re on, it was heartening or worrisome to see cattle and beef prices recover coming into spring. Cattle markets are widely reported in farm and ranch media, but beef and competing protein prices underlie it all.
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Depending on which side of the gate you’re on, it was heartening or worrisome to see cattle and beef prices recover coming into spring. Cattle markets are widely reported in farm and ranch media, but beef and competing protein prices underlie it all.
The Choice boxed-beef price recovered nearly 20% from its January low by the end of March, to the neighborhood of $2.20 per pound. Some analysts say that’s as high as it can go, that buyers will start to back away and switch to other proteins.
Paul Dykstra, beef cattle specialist for the Certified Angus Beef ® (CAB®) brand, says history suggests a little more support for higher beef, at least the higher quality kind.
“The CAB and Choice cutout values are at 90% of their three-year average,” he points out, noting pork prices have been falling since February while chicken returned to its steady climb. At 110% of last year’s price, chicken is a less attractive alternative than pork.
“Select grade beef has shown more strength this year, mainly because supplies are down 6.5% so far,” Dykstra says. “The market wants less of it, and lower pork prices may keep a lid on the Select cutout moving forward.”