Beef Prices Move Up, But Still Off Of Last Year’s Figures

Beef production in the U.S. this year will increase 5.7% year-over-year, coming in at  just under 27.7 billion pounds, however, that's about 40-million pounds less than what had been forecast one month ago.  USDA Outlook Chairman Seth Meyers says they've seen some ligher carcass weights, and a slower slaughter pace, which have both cut into supplies.  He noted that has strengthened the overall price prospects for steers.

"But most of that strength coming here in the first quarter, from what we've observed, for prices, recently."

For 2018, the USDA has added $.38 to the forecasted average steer price , moving it up to $119.63 per hundred weight.  While that's better than what was expected earlier this year, it's $1.89 lower than this time in 2017.

"But I think if you look at the overall price decreases, they're moderated by what's been pretty good demand so far to date."

Putting downward pressure is the fact that growing supplies of beef are competing with gains in pork and broiler production; 5% for pork over last year, and over 2% for broilers.

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