With U.S. beef cow numbers projected to decline by 200,000 head in 2024, supplying downstream brand partners with product becomes even more challenging. Understanding why roughly 64% of eligible carcasses are unsuccessful in reaching the brand’s 10 specifications is a big step toward informing cattlemen of their opportunity to capture more dollars through improved carcass quality.
In early August, USDA turned on a new internet dashboard tool providing user-friendly access to more detailed fed cattle pricing information. Using data already captured by the agency through Livestock Mandatory Reporting (LMR), the dashboard takes a big step in improving user access and utility of the data.
The Choice-Select price spread has long been held as the industry’s barometer for the differential in consumer demand for high-quality, well-marbled beef and the leaner counterpart consisting of only slight degrees of marbling. However, using the current Choice carcass premium to Select as a gauge for consumer demand is misleading.
Meeting the demand for the Certified Angus Beef ® brand during the 1980s was relatively easy—we would just add another packing plan to certify carcasses and increase brand supply. Today opportunities for supply growth are more challenging, given that 85% of the U.S. packing volume is licensed under the brand. Thus, supply dynamics come down to one fickle component: the quality of the cattle.
The fed cattle market was defensive last week, pressured by slippage in boxed beef values and an underperforming futures market. Taking a broader view, the USDA Prime grade has been the beneficiary of longer feeding periods with the national average Prime share at 10.5%.
Easily one of the top themes for the first half of 2024, carcass weights have averaged a 21 lb. surplus above the same time a year ago. In the past seven weeks, the weight increase bulged to average 32 lb. heavier than a year ago. Read more of the details in the CAB Insider.
Beef market veterans know the onset of summer brings on the “dog days of summer” for beef consumption trends. This means that middle meat steak items, perfect for grilling during spring holidays, begin to take a backseat.
Price spreads between quality grades are beginning to seasonally widen—as expected this time of year—but the magnitude of the spread movement is less pronounced than in recent years.
Beef Month is nearing its end and with that the anticipation of spring holiday and grilling season demand begins to tarnish. Father’s Day remains a target in mid-June and spot market wholesale beef demand will likely hold up through that period.
Certified Angus Beef is offering $100,000 in scholarships for agricultural college students through the 2024 Colvin Scholarship Fund. Aspiring students passionate about agriculture and innovation, who live in the U.S. or Canada, are encouraged to apply before the April 30 deadline. With the Colvin Scholarship Fund honoring Louis M. “Mick” Colvin’s legacy, Certified Angus Beef continues its commitment to cultivating future leaders in the beef industry.
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