Choice boxed beef prices saw a jump from $204.32 on Monday to $207.93 on Tuesday. The $3.61 increase brought the 27-day average price to $219.92. Select boxed beef saw an even greater increase of $4.27 to $203.28, bringing the 27-day average price to $213.58.
Choice primal loin saw the largest increase of $4.80, followed closely by choice primal chuck with a $4.60 increase. Choice primal flank saw the lowest increase of 59 cents.
CME Group Inc, the world's largest livestock futures market operator, has raised margin rates for live cattle futures for the second week in a row after dramatic swings in the market, an exchange spokesman told Reuters on Thursday.
A year ago, talk around the coffee table had one rancher telling how he got $3/lb. for his calves and another said he sold his for more than $1,500/head, a price he was sure he'd never live long enough to see.
By Derrell S. Peel, Oklahoma State University Extension Livestock Marketing Specialist
There are encouraging signs that fed and feeder cattle markets have turned the corner on the massive slide in prices in recent weeks. Notice that I didn’t say “correcting the overcorrection”. What has happened, especially for fed cattle markets, was a necessary correction to provide the market signals to fix a problem that developed over several months due to a lack of proper market signals.
Anyone who follows beef cattle markets closely is well aware of the price volatility that currently is in place. No better example of this is the cash fed cattle market. Current fed cattle prices are just now falling below prices seen two years ago in 2013. During the past two years, the fed cattle market has experienced two of the most extreme moves in the history of the cattle market.