Beef Prices To Trend Down This YearJanuary 11, 2017 6:03am
The decline in cattle prices has many beef producers feeling disappointed and uncertain about the future of the industry.
Brian Perillat of FCC notes, over the last year and a half, cattle prices have generally trended lower, but the extremes of the highs early last year until the lows in October were historic.
He says calf prices dropped $1.10 per pound over that time, which was about forty per cent.
The analyst points out that even when BSE struck the sector in 2003, prices lost 44 cents a pound, which was 31 per cent.
Perillat also feels the sharp increase in red meat production across the continent has been the main force in the decline in beef prices.
U.S. production jumped 5 per cent while production here soared by 10 per cent.
He concludes that even though cattle market prices saw some upside at the end of 2016, the overlying trend is most certainly going to be down this year as even larger inventories hit the market.