Home Farm Equipment Retail beef prices remain high

Retail beef prices remain high

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Shoppers can anticipate greater beef prices at grocery shops regardless of a current dip after the standard seasonal peak round Memorial Day, in keeping with a Texas A&M AgriLife Extension Service skilled.

David Anderson, AgriLife Extension economist, Bryan-Faculty Station, mentioned retail beef prices remain above the five-year common, as provide and demand elements proceed to contribute to higher-than-normal prices.

Retail beef prices are decrease than this time final 12 months on the top of the pandemic, when panic shopping for and packing plant closures drove prices upward, Anderson mentioned.

Anderson mentioned alternative retail beef prices have been $6.96 per pound in comparison with $7.59 per pound a 12 months in the past throughout the pandemic. Whereas prices are decrease than a 12 months in the past, they’ve been on the rise this 12 months. Selection common beef prices have elevated from $6.41 to $6.96 per pound because the first of the 12 months..

The current value adjustments for beef are in line with historic seasonal peaks and valleys, however prices remain above the five-year common of $5.82 per pound. Anderson mentioned he expects market circumstances to maintain prices up.

Cuts like rib-eye steaks skyrocketed this spring by means of Memorial Day weekend, which generally marks the kickoff to grilling season and the annual seasonal peak for retail beef prices, Anderson mentioned. Rib-eye cuts have been $13.18 per pound wholesale heading into the vacation and settled at $10.36 per pound this week.   

“We’re seeing tighter supplies across the board on all proteins as there continues to be strong demand here at home and booming exports,” he mentioned. “Beef cuts calmed down a little after the typical season price spike around Memorial Day, but it looks like higher prices at grocery stores are here for the foreseeable future.”

Extraordinary demand for retail beef

Anderson mentioned the financial restoration continues to drive robust demand for beef. Restaurant demand for beef has put growing stress on provides – particularly higher-value cuts like rib-eye and tenderloin – as folks search for alternatives to dine out.

Demand for beef at grocery shops has not waned as restaurant capacities rise, he mentioned.

“There is extraordinary demand right now,” Anderson mentioned. “We’re coming out of the pandemic, and people want to get out, and restaurants are meeting that pent up demand. But purchases at grocery stores hasn’t slacked off, even with the reopening. The combination is fueling higher retail prices as a result.”

However greater prices to supply beef and transfer it by means of the provision chain to grocers and eating places are additionally feeding greater prices for customers, he mentioned. The identical market elements are affecting different proteins like hen and pork.  

Feed, gasoline and labor prices are all greater on the provision finish as decrease unemployment and financial progress push demand greater, Anderson mentioned.

“I would argue that the problem is still a lingering bottleneck in terms of a shrinking herd, packing capacity, trucking capacity to move product around the country, and all the moving parts that get us from the farm to the plate,” he mentioned. “Part of that is the turmoil we’ve experienced during the pandemic and the volatility it introduced to the market. I think this is the latest round of volatility that we’re working through after a year and a half.”

Calf prices, high manufacturing prices

On the provide finish of the chain, beef producers have seen calf prices rise some, particularly in sure weight courses, however prices remain under the five-year common.

Anderson mentioned high feed prices – primarily corn and soybean meal – have stymied value positive aspects at native sale barns throughout the state. Feedlots are keen to pay extra per pound for greater weight calves – 700-800 kilos – that don’t require as a lot feed to complete out, whereas calves 400-600 kilos or decrease are usually not fetching prime greenback.

“Gains from grass cost less than corn right now, and so feedlots are willing to pay a little bit more for heavier calves,” he mentioned.

The truth that most cow-calf operations have higher grazing circumstances than a month in the past has additionally settled the market some as properly, Anderson mentioned. Producers have been culling their herds deep and promoting calves early after they have been wanting towards extreme drought and a warmer, drier summer time forecasted forward.

“A couple months ago, there were no buyers and a lot of sellers, and prices went down,” he mentioned. “Now there’s more grass, so nobody is under pressure to sell and there are more buyers looking to restock or take advantage of good grazing.”

The rainfall that lowered drought ranges throughout Texas possible steadied the market a bit for producers. However Anderson mentioned contraction of the Texas beef cattle herd was anticipated to proceed resulting from feed prices, continued menace of drought and the autumn seasonal dip in demand that triggers lowered beef manufacturing.

“We are producing a lot of beef, but we could see less production year over year,” he mentioned. “I think we’ll continue to see retail prices come down from peaks overall, but not below last year or even 2019. Consumers will get some relief, but it’s hard to say that we’ll see overall prices decline.”

AgriLife Extension district reporters compiled the next summaries:

The 12 Texas A&M AgriLife Extension Districts

CENTRAL

Temperatures and humidity have been above regular. Rivers and streams have been high and operating muddy. Some corn crops have been displaying indicators of fertilizer shortages, possible attributed to a mix of speedy progress, some soil saturation stresses and denitrification. Cotton stands have been variable and recovering from soil saturation and have been now reaching first bloom. A big second hay reducing was close to completion with producers racing to bale forages earlier than the following rainfall. Winter wheat harvest was lastly nearing completion. Sadly, the crop was weathered considerably and can possible be downgraded. Sorghum seemed wonderful and was now at coloring stage. Area checks have been displaying only a few pests with some aphids and an occasional stinkbug. Producers have been additionally discovering the occasional fall armyworm. Livestock have been doing properly, and physique circumstances have been good on pasture. A barely cooler, wetter climate pattern was within the forecast. 

ROLLING PLAINS

One other spherical of storms delivered 2-3 inches of rainfall to Baylor County, whereas Motley County reported 4 inches in two days and lots of fields beneath water. Different areas reported scattered showers. Wheat harvest was nonetheless approach behind with loads of moist spots in fields, downed wheat and weed points. Cotton producers have been additionally making an attempt to meet up with solely 1 / 4 of the crop planted up to now in wetter areas. Producers have been busy harvesting wheat and planting cotton in drier areas. Knox County reported cotton plantings have been full. Coastal Bermuda grass pastures seemed good, with a second reducing nearing harvest time. Corn and sorghum seemed good, with corn in a number of totally different phases resulting from delayed plantings. Sorghum was principally within the boot stage. Pastures and rangelands seemed good following good rain occasions. Cattle have been in good situation, and calves have been making good positive aspects. Most fall-born calves have been weaned and bought.

COASTAL BEND

Climate was scorching, humid and dry with little to no rain reported. Crops continued to progress, and corn and sorghum have been drying down. Small quantities of grain sorghum have been harvested, however there was a reluctance to use spray herbicides resulting from rain within the forecast. Cotton was setting bolls, and a few stunted cotton recovered however was approach behind. Rice was beginning to head out. Rangelands and pastures have been lush, and livestock have been in good situation. Hay was minimize and baled with good yields reported.

EAST

Hay manufacturing was in full swing. Producers labored quick to chop and bale in between pop-up showers. Sabine County reported producers have been lastly capable of get hay harvesting gear into bottomlands. Smith County reported a necessity for extra rainfall. Pasture and rangeland circumstances have been truthful to wonderful. Subsoil and topsoil circumstances have been sufficient. Temperatures and humidity have been on the rise. Livestock have been in truthful to good situation. Fly populations have been outrageous in Houston County, with each home flies and horn flies inflicting issues. Producers reported the armyworm invasion had begun. Most counties within the district have been having points with armyworms. Wild pig management continued.   

SOUTH PLAINS

Soil moisture ranges have been poor to truthful, however rain was within the forecast. Cotton circumstances ranged from seed within the floor to the squaring stage. This extensive crop progress vary was reflective of climate and soil circumstances. Peanuts have been usually doing properly with many fields starting to bloom. Grain sorghum was being replanted in some areas. Cattle have been in good situation 

PANHANDLE

Climate was scorching and dry, and all crops have been beginning to undergo from dry circumstances. Soil moisture ranges have been brief to sufficient. Pasture and rangeland circumstances have been in truthful to good situation. Winter wheat and oat harvests continued. Corn and cotton have been in truthful to wonderful situation. Sorghum circumstances have been truthful to good, and peanuts have been in good situation.

NORTH

Soil moisture remained brief to sufficient for many counties. Winds and temperatures within the 90s dried up a lot of the soil moisture. About half an inch of rain fell in areas, however extra was wanted to maintain hay and crop manufacturing. Hay producers completed eradicating the primary reducing. The constant warmth allowed for good harvesting circumstances for wheat and oats. Some corn was broken throughout the extreme rainfall just a few weeks in the past, however was anticipated to be replanted quickly. Cotton, grain sorghum and soybeans have been doing higher with sunshine. Livestock have been in good situation, and spring-born calves have been doing properly.

FAR WEST

Temperatures reached 110 levels with lows within the mid-60s. There have been scattered showers in elements of the district and rainfall quantities round 3 inches areas. High temperatures have been anticipated to evaporate a lot of the precipitation quickly. Rangeland circumstances have been enhancing barely in areas that obtained bigger quantities of rainfall, nevertheless circumstances remained poor for a lot of the district. Steady triple digit temperatures have been good for cotton progress. Some irrigated cotton fields have been squaring. Alfalfa fields seemed good as properly with most farmers irrigating as soon as, relatively than twice between cuts. The pecan crop seemed good as properly, with small clusters seen. Watermelon and cantaloupe have been harvested and bought at farmers markets.

WEST CENTRAL

Circumstances have been scorching and dry. Wheat harvest was wrapping up, and hay reducing and baling continued. Cotton planting resumed however some areas have been too moist, and producers have been hoping to complete planting earlier than the deadline. Grasshoppers, cutworms and different insect pests have been growing in numbers. Pastures have been in truthful situation. Livestock have been in good situation.

SOUTHEAST

Chambers County obtained heavy rains and extra rainfall was within the forecast. Many pastures have been holding water. In Jefferson County, rice was progressing, however the pastures have been too moist to chop hay. In The primary and second hay cuttings have been harvested in Grimes County. Rangeland and pasture rankings have been very poor to wonderful. Soil moisture ranges ranged from sufficient to surplus.

SOUTHWEST

There have been scattered showers throughout the district with some areas not receiving any moisture. Soil moisture was declining resulting from heat and windy circumstances. Rangelands and pastures have been pretty inexperienced. Cotton was in good situation. Corn and sorghum continued to mature. Hay harvest continued throughout a lot of the district. Travis County reported that wheat harvest was progressing slower than anticipated. Caldwell County reported cattle, sheep and goat prices remained regular with the prices of pairs barely growing. Livestock have been in truthful to good situation. Wildlife have been in good situation.

SOUTH

Temperatures continued to rise all through the district, and circumstances have been dry aside from just a few light-to-moderate showers. Jim Hogg County reported temperatures above 100 levels. Kleberg and Kenedy counties reported as much as 2.5 inches of rainfall. All crops have been beneath irrigation. Peanut planting continued and must be accomplished quickly. Corn fields have been in dent stage, and sorghum was turning coloration. Sunflower and grain sorghum harvests have been beginning. Corn harvest ought to start quickly. Midge continued to be a difficulty in sorghum. Cotton was blooming and enhancing with good warmth models. Bermuda grass and hay grazer have been being minimize and baled. Rangelands and pastures have been starting to indicate drought stress, however some areas continued to enhance with further moisture. Beef cattle circumstances have been enhancing, and market volumes remained low. Some producers have been offering supplemental feed to livestock and wildlife. Feed prices continued to extend at native feed shops, and producers have been reducing and baling as a lot hay as attainable. Spherical bales have been averaging $85. Inventory tanks have been holding up properly. Watermelon and cantaloupe harvests continued. Sesame fields have been rising. Many citrus orchards have been being taken out of manufacturing.

Supply: is AgriLife TODAY, which is solely answerable for the knowledge supplied and is wholly owned by the supply. Informa Enterprise Media and all its subsidiaries are usually not answerable for any of the content material contained on this data asset.

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