Market Outlook 2021-2022
In August, at the National Cattlemen’s Beef Association’s Annual Convention, CattleFax presented their 2021-2022 Cattle Industry Outlook. CattleFax is the global leader in industry market research, analysis and information. The summary indicates that consumer beef demand is on the rise and it is expected to develop a new higher price range in the beef market. As the drought continues, corn and soybean crops are threatened. Although planted acres are increasing, yields will be modest which will ultimately translate to higher grain prices.
Fed cattle continue to bottle-neck as feedyards deal with a heavy supply of market ready fed cattle; while packing capacity has remained low in 2021 due to plant slowdowns and labor challenges. The pressure on feedyard capacity is expected to lessen as the impact of three years of herd contraction reduces placements. The summary reports that all live cattle class values are expected to increase several hundred dollars per head over the next few years.
The 2022 Price Outlook for the following categories is reported as follows:
550-Pound Steer: $200/cwt, up $30 – A smaller calf supply will support 2021 prices at a $170/cwt average. And recent cowherd liquidation will reduce future calf crops. US average 550# steer values should increase $30/cwt next year – trading from $170-$230.
Utility Cows: $70/cwt, up $6 – There is more cowherd liquidation this year, but stronger lean beef trimmings demand has supported higher cull cow prices. Expect 2021 prices to average $64/cwt, while 2022 values should be $6 higher, with a range from $60-$80.
For the full 2021-2022 CattleFax Industry Outlook Report, visit www.cattlefax.com