Beef supply issues

The beef 90's market has pushed the cost to produce hamburger to near record highs. But this has been tempered some by a relatively deflated, at least compared to a year ago, beef 50's market. So what's happening with beef 50's you ask? Good question. Fed cattle supplies backed up during the winter as beef packer margins fell to their lowest levels since the New England Patriots won their fourth Lombardi Trophy in 2015 (painful for a Steeler fan to write). And now as these cattle come to market they are heavier than initially expected. Note the counter seasonal rise in steer dressed weights during the last few months in the chart below. Heavier fed cattle have a tendency to weigh (thank you very much) on the beef 50 markets.

Datum FS is a supply chain and commodity intelligence organization. If you would like to learn more about Datum FS services feel free to email us. Thanks for reading.