Summer demand pushes US beef prices
Choice grade beef has worked its way above $300/cwt
27 August 2024
1 minute read
By: Summer demand has helped push US beef prices up, according to a recent market report from Bernt Nelson at the American Farm Bureau Federation.
Choice grade beef has worked its way above $300/cwt and was up $1.04 on July 29 at $314.81. On the same day select grade was up $4.06 at $301.52/cwt.
Something that can be helpful in gauging the demand for beef is the difference between choice and select grade beef, Nelson said.
"A wider difference between choice and select beef often indicates a consumer is willing to pay more for premium cuts of beef where a narrowing difference may show that consumers are more willing to settle for a lower quality cut," he said.
The current spread sits at $13.11, which is just below the year-over-year average of $16.08. This spread has been widening since late March, which is typical when the grills come out for warmer spring and summer months.
July average cash fed steer prices have ranged from $188/cwt to $192/cwt. As we approach fall, cattle available for placements on feed should slow down. This should bring higher cash prices at the sale barn, which will drive beef prices higher as well.
