As many Americans are scrambling to find a new normal during the COVID-19 crisis, restaurants are being forced to find creative ways to keep food moving as dine-in is ceased. Meanwhile, retailers are scrambling to find beef to put in the meat case. Many CAB partners are lending helping hands.
Seasonal factors are impacting the CAB carcass headcount. Feeders have older, heavier cattle and more in the yard, lending to a higher supply while CAB acceptance is staying at a steady 36%.
CAB continues to pay producers who target the brand. Up to $92M in 2019 was paid back to feeders and producers. Steer and heifer carcass weights are at record highs, averaging 904 lb. the first six weeks of 2020.
This year has started out with record highs for fed steer/heifer carcasses grading Prime. How much will the market demand and at what premium can it support? We haven’t reached the ceiling yet.
Cattlemen always try to lower cow cost while improving returns. Paul shares what pays in your cow herd and why you want above average cows to hold onto. CAB premiums averaged $116/cwt. in 2018 and 2019.
The passing of December holidays signals the end of late-year market popping demand for marbling-rich middle meats. Carcass cutout values for those items shift back towards normalized levels with notable seasonal changes.
More research shows marbling is not correlated to other traits, supporting its possible to have maternal function and carcass quality in one animal. Late December is showing more typical Choice grading trends.
In this edition of the CAB Insider, Paul Dykstra shares fed cattle prices are up $2 this week. Tyson Finney plant is back to harvesting. USDA Choice grade percentages are still dropping, emphasizing consumers demand for quality beef.
There has been a 7.4% increase in heifers harvested this year, while steers are down 0.4%. History shows fed heifers post higher marbling scores on average, yet we don’t see that reflected in the recent marbling trend.
Paul Dykstra shares the cattle market is seeing impressive recovery since the fire in August. China’s protein needs shift towards beef since their pork industry’s onslaught of ASF, causing disruption in typical U.S. beef imports.
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