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Beef Cutbacks Surprise Tracy
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Beef production cutbacks were a bit stronger than I expected with 598K head harvested last week, well down from 622K the week prior. Last year saw 640K head harvested so production going into the summer season is being restrained to push prices higher. And they are pretty successful looking at the cutout. We have higher prices right rolling in as tightened supplies have done their job and will continue for at least the next several weeks. This is a time when you need to buy what you need now, waiting will cost you money. The beef complex is moving higher, pretty much across the board. Packers have signaled they plan to continue with reduced harvest to keep the market up. We’ll see how long this continues but right now it is effectively moving prices higher.
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