News
USDA’s steer price projection is up
The USDA’s projection of 1.5 percent beef production growth is not as much
as previously anticipated. Outlook Board Chairman Seth Meyer says the lower
estimate is for various reasons, such as more cows going to slaughter.
“And I think you’ve got lighter carcass weights,” said Meyer, in comments
provided by the USDA, “as we’ve seen some cold temperatures which have impacted
feed conversion in the Midwest and the Plains.”
2019 beef output is now projected to be 27.3 billion pounds, about 310 million pounds
less than USDA’s last forecast. The price outlook for fed cattle is brighter because
of strong demand.
“So you’ve got maybe some supply constraints in the beef market and demand, which
has been quite solid,” said Meyer
The steer price estimate for the 2019 is $119.63 a hundredweight, $1.13 more
than analysts were predicting last month, and $2.50 more than last year’s average.
Add Comment