Are beef cattle prices finally bottoming out and moving higher again?

 

There are signs of that in the latest USDA forecast.  On the surface the numbers suggest another drop in steer prices next year because beef production keep rising from a bit over 26 billion pounds last year, up to projected 27.7 billion pounds next year.  However, USDA Outlook Board Chairman Seth Meyer said beef demand seems to be growing domestically, beef exports are up.

 

 

Steer prices this year are expected to average $5.00 CWT less than 2017's figures at $116.

 

 

"We'll get an increase in prices of about $1.70 going into 2019 to $117.75 next year."

 

 

That's unusual when supplies are going to be larger.

 

 

"So, there is some support there in terms of overall demand, despite the increase in supplies."

 

 

The problem for producers, according to Meyer, could be projected higher feed prices next year, corn, for example, projected over 14% higher with steer prices up 1.5%.

 

 

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