Fed cattle prices took a hit at the beginning of September, while Texas fed cattle continue to see the low end of trade. Setback is partly seasonal-goodbye grilling weather after Labor Day. The Choice-Select spread remains strong.
“There’s a solid demand for our beef, both in terms of the domestic market and the export market,” he said. “We think USDA is understating U.S. beef trade, so there’s a real argument of a demand bull market that’s developing as U.S. cattle prices tighten.”
The cattle industry needs to make some bold, creative changes to ensure its viability. That was the wakeup call from speakers at the Feeding Quality Forum, Aug. 27 to 28 in Amarillo, Texas. Persistent problems may require new approaches.
Paul Dykstra gives inside market updates for the shifting cattle prices. Research shows efficiency and marbling traits in cattle are not related and is good for cattlemen.
Imagine an alternate American history line over the past 16 years, with just an incidental supply of “Angus” beef. There’s a Certified Angus Beef ® (CAB®) brand but it began to coast in 2002 and scaled back to maintain flat demand. The 30 other Angus programs at that time struggled to compete with commodity beef; most folded.
There’s no doubt, cattle that earn the Certified Angus Beef ® (CAB®) brand or Prime grade also earn premiums. In 2017 alone, packers in a biannual survey reported paying cattle owners $75 million in grid premiums specifically for CAB.
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