It appears U.S. beef cattle producers are still in the midst of a herd and production contraction, while steer prices continue to increase faster and farther than had been expected.  In response, the USDA Outlook Board.

"We raised the price this month by a $1.23 cwt [the season average steer price]," noted Outlook Board Chairman Mark Jekanowski.  He added that increase puts the projected steer price for all of this year at an average of a bit over $141 cwt.  What about the steer price projection for 2023?

"Prices are anticipated to be up nearly $12 year-over-year."

To an average of over a $153, 8.5% more than this year and a full 25% higher than 2021.  Meanwhile U.S. beef production still falling.  Jekanowski expects 2023 output to be almost 2 billion pounds less than this year.  Will this get producers moving in the direction of an expansion?

We'll get some clues to that question with USDA's Cattle Inventory Report July 22nd.

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