ANGUS BEEF BULLETIN EXTRA

June 20, 2019 | Vol. 12 : No. 6

Marketing


marketing

Uncertainty is Affecting Cattle Prices

Short-run volatility may affect timing and other tactical considerations for production and marketing.

Cattle and beef markets have decreased from April highs with uncertainty in a variety of factors weighing on markets the past month. The latest threat of additional tariffs on Mexico rattled many markets in early June, including cattle and beef markets. It appears that the threat was removed, and cash and futures markets may stabilize somewhat this week. However, ongoing uncertainty about trade and the politics of trade continue to take a toll on agricultural and other markets.

In The Cattle Markets

Feed prices in 2019.

The USDA Crop Progress report released June 3, 2019, showed that as of the week ending June 2, 2019, only 67% of corn had been planted, compared to 96% in 2018. The July, September and December 2019 CME corn futures market contracts have increased an average of $0.59 since May 1. The average May change over the last five years has been a decrease of $0.11. Given the significant decrease in plantings and the percentage of corn that has been planted late, corn price may continue to increase. While the trade concerns with Mexico are the bearish indicators, the decrease in acres will likely have a greater impact.

The Source

New Facebook group helps expand marketing reach.

Farmers and ranchers in the United States raise some of the best beef in the world. The number of pounds of the Certified Angus Beef® (CAB®) brand sold each year continues to grow. Meeting those specifications has definitely taken focus and hard work, but how do feedyard buyers know where those premium cattle are selling?

Trade Breakthroughs

Long-awaited trade breakthroughs fuel optimism at USMEF Spring Conference.

U.S. Meat Export Federation (USMEF) members gathered in Kansas City for the USMEF Spring Conference and Board of Directors Meeting, with recent trade developments lending an optimistic tone to the event. In his address to the USMEF membership, President and CEO Dan Halstrom reported on Mexico’s removal of retaliatory duties on U.S. pork, Canada’s elimination of a 10% duty on prepared beef products and Japan’s lifting of long-standing restrictions on U.S. beef exports.

The Link

Do you have a target?

Gross weight has always been an important factor when selling cattle. We are, have been and will continue to sell pounds of beef whether you are a rancher or a feeder. In order to receive a premium price on those pounds of beef being sold, it’s important to focus on producing a product for which consumers are willing to pay more.

Signs Of A ‘Current’ Fed-cattle Supply

Feedyards are staying on top of their marketings while realizing lighter weights than they’d projected.

Historically we see the proportion of Choice and higher quality grade carcasses in the mix tend to bottom out for the “spring low” in the trend line this time of year. That’s upon us with the percent Choice grade for the week of May 20 dipping to 69%, recovering to 70% the following week, but remaining 1 percentage point lower than a year ago for two weeks now. Texas cattle are the leanest by far with a 62% Choice, 3.8% Prime, for a combined Choice and Prime total that’s 3.5 percentage points below a year ago for the state.

Northeast Butchers Compete for Grand Prize Title

The craft of butchery and meat cutting offers beef consumers choices.

It isn’t every day one gets to watch butchers from the Northeast region charged with the task of breaking down a beef subprimal into salable cuts of beef to appeal to today’s beef consumers. On May 9, the 2019 Best BEEF Butcher Contest took place at the Penn State Meats Lab. Scheduled during the front-end of the 80th Pennsylvania Association of Meat Processors (PAMP) Conference, this contest showcased eight butcher contest finalists from all over the region, including Massachusetts, Connecticut, New Jersey, New York and Pennsylvania.