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Fed cattle prices projected to decline

 

A livestock economist expects beef prices to dip this year unless consumer demand can support increasing supplies.

USDA livestock analyst Shayle Shagam anticipates most of the decline to start to surface in the second quarter for fed cattle prices.  “We do expect to see prices averaging a little bit above $118 for the year compared to about $122 for the year in 2017.”  Shagam says that means feed lots will continue to operate in the red which has been ongoing since last summer.

The number of cattle and calves in feed lots in January was up eight percent from last year.

USDA’s biannual cattle inventory report will be released at 3 p.m. EST Wednesday and provide insight on where the beef industry is headed.