Current. Relevant. Quality-driven.
For nearly 10 years, Paul Dykstra has written a bi-weekly market column for the brand, these past six years as the CAB Insider. He shares current market updates, trends and observations with a closer look at the cattle market from the beef-product side than you can find anywhere else. Yes, there’s an emphasis on the Certified Angus Beef ® brand, and you will find the latest research exploring carcass quality. We want you to be the first to know all of this important industry information, to help bring even more value to your herd.
The man on the inside
A native of Colorado, he grew up on a commercial cow calf ranch in western Colorado and later earned a degree in animal science from Colorado State University. Paul worked as a feedyard manager for the U.S. Meat Animal Research Center in Clay Center, Neb., before joining the brand’s supply development team in 2002.
As the Assistant Director of Supply Management and Analysis for the brand, Paul combines his experience and knowledge to work closely with ranchers and feedyard managers to raise Angus cattle using the best management practices to enhance profitability by producing quality beef.
READ THE LATEST INSIDERS
At the Feeding Quality Forum in August, the brand’s Meat Scientist Daniel Clark, Ph.D., and Director of Product Solutions Clint Walenciak pulled back the curtain on factors that limit eligible steers and heifers from qualifying for CAB.
Strong ribeye demand has had heavy influence on cattle values for feeders selling on a grid or carcass value formula. Just as Prime quality grade premiums held much higher than expected late this summer, the Choice/Select price spread has popped back up within reach of record territory once again in recent weeks.
While the entire CAB carcass is charting new territory at record highs for this time of year, the price direction of ribeyes is defying the seasonal trend to an amazing degree.
Lately the Prime grade has slipped down to 8.3% of the total, versus 9.5% a year ago. The reduced slaughter pace, combined with this lower Prime share, has prices heated up for the most premium quality grade.
Beef demand continues at such a solid pace that it seemingly defies logic, with the CAB cutout value now 41% higher than a year ago. Beef buying ahead of Labor Day has proven stronger than high prices suggest it should be.
This summer many of us have had our eyes on carcass weights, grading trends and days on feed as they relate to the fed cattle sector. These factors have been set on abnormal paths since the onset of the pandemic and accompanying backlog over a year ago.