Beef Market Report October 24, 2011
The Market held fairly steady this week. The market is expected to be precarious as we move into the next few weeks. Production cutbacks look likely over the next few weeks and this is expected to put pressure on the market. Packer margins remain very negative and reports show that some processors have operated on a slightly reduced schedule last week and again this week. Live weights for last week, while on par with the previous week, continue to trail same time last year. Several reports over the past few weeks talk to the shrinking herd sizes in the Midwest and the ongoing problems of feed and water. With pastures in bad shape, the need for feed continues to put additional burden on an already bad situation. All indicators are pointing to beef supplies shrinking as we move into 2012.
Grinds- Market is steady. Inventories remain fairly tight and is listed as well sold thru the end of this month.
Rounds- Market is steady.
Loins- Market is steady. Current pricing levels have helped to spur demand and overall demand is improved over previous weeks.
Chucks- Market is steady. Export demand is very good and continues to put pressure on the market. This market is expected to firm as we move closer to the holidays.
Ribs- Market is steady. Choice ribs are slightly firmer this week while the remainder of the market has held steady. This market is expected to gain strength over the next few weeks.