US cattle prices rally on winter storms
06 March 2013
After easing throughout the past month, the US fed cattle market rallied last Friday to around 127-129US¢/lb lwt (280-284US¢/kg lwt) – the highest level since December. The sharp increase was driven by the reduction in the fed cattle supply, with two major late winter storms disrupting cattle movements and logistics.
US boxed beef prices also increased for both choice and select cuts late last week, as limited slaughter enabled packers to lift prices. While US beef prices are largely expected to trade higher in the next few weeks in response to reduced cattle slaughter and increased demand into spring, CattleFax suggested the higher average cattle carcase weight, along with the soft consumer demand, may maintain cattle prices at current levels.