Beef eaters can look forward to moderation in prices at the grocery counter in the weeks ahead, according to analyst Anne Wasko.
“We’ve got lots of beef,” she said in a Real Agriculture interview.
“There’s no question that beef prices got out of line with pork and poultry.”
But more supply has come to market as beef processors in Alberta are back to full slaughter volumes, making up 81 per cent of Canadian slaughter.
“Today we’ve got lots of beef to sell at what looks a pretty good price.”
The two main Alberta packers, normally accounting for 75 per cent of Canadian beef processing, had lines shut down in April and May over coronavirus.
Boxed beef prices at $2.15 a pound in early July were half the peak price.
Wasko of the Gateway Livestock Exchange said beef slaughter numbers are impressive.
In the last week of June, 66,580 head was an eight per cent increase from one year ago.
“We talk so much about the problems they had. They’re chipping away at the backlog” created by the virus outbreaks.
Her confidence in clearing the backlog of fed cattle is boosted by reduced average animal weights. Steer weight is seven pounds higher than last year.
“A few weeks ago it was 45 to 50 pounds higher.”
Fed cattle prices looked higher by three cents a pound in early July and live cattle futures offer confidence in the outlook with $99.40 for October, $103 for November and $106 for December.
United States trends are also positive.
Ron Walter can be reached at ronjoy@sasktel.net
