Analysts watch seasonal beef trends, weather
Benjamin Herrold, Missouri Farmer Today
AgUpdate - June 22, 2022
Wholesale beef prices have shown some seasonal trends. University of Tennessee ag economist Andrew Griffith says the buying is mostly finished for two big summertime meat consumption holidays.
“As if on cue, wholesale boxed beef prices softened this week as they tend to do in the middle of June most years,” he says in his weekly market outlook. “It was said last week that prices may have another week or two of higher prices, but prices decided to begin their seasonal decline when they typically do. Prices the past few weeks have been supported by Father’s Day and Independence Day beef purchases, but the meat buying for those two holidays is essentially complete.”
Griffith says the market could see some seasonal weakness now until the buying for the Labor Day holiday begins.
“Thus, the market will sluggishly maneuver through the rest of June and July before finding limited support for the Labor Day holiday,” he says.
Inflation also remains a concern. Griffith says this could have different impacts for different consumers.
“There are two types of consumers. The first is the one who will purchase less beef because they know they have to pay the mortgage, car loan, and all necessities,” he says. “This consumer will purchase less beef because they have fewer dollars to work with. The second consumer is the one who will skip a house payment to go on vacation. It is a little harder to know what they will do with beef.”
The hot weather facing much of the country is also impacting cattle markets and marketing decisions...