Livestock Marketing Information Center
In The Cattle Markets
Updated: 9/2/2024
Beef-on-Dairy is a Growing Trend, But Its Impacts on Beef Production are Small
Growth in beef-on-dairy has raised several questions, including the impacts of the system on U.S. beef production. Recent estimates picked up by the farm press suggest that beef-on-dairy represented 7% of 2022 cattle slaughter or 2.6 million head. The same source predicts that beef-on-dairy could account for 15% of cattle slaughter by 2026. There is nothing wrong with these numbers, but some context should be added regarding how this would impact US beef production levels.
Livestock Monitor
Updated: 9/6/2024
RETAIL MEAT PRICES
On Wednesday, the USDA Economic Research Service published retail meat prices for August 2024. Overall, retail beef, pork, and chicken prices remain elevated, with beef and pork experiencing some contra-seasonal behavior. Year-over-year the consumer price index for all goods has increased +2.5%, with food products up +2.1% and meat products up +2.8%.
CORN, SOYBEAN HARVEST ESTIMATES LITTLE CHANGED OVER PAST MONTH
USDA-National Agriculture Statistics Service (NASS) made few changes to its estimates of corn and soybean harvests in upcoming months that were released on September 12. Corn production this year is pegged at 15.186 billion bushels, a 40-million-bushel increase from the projection made in August. This year’s production is down slightly from last year’s 15.342 billion bushels. Production is based on an average yield per acre of 183.6 bushels, up 0.5 bushels from the August estimate. There was some market sentiment prior to the report that average yields could be as high as 188 bushels per acre, based on favorable crop development weather. Following the release of the report, corn prices for December delivery at the Chicago Mercantile Exchange moved up from $3.98 per bushel to $4.05.
BEEF AND PORK DEMAND INDEX
The all fresh retail beef demand index for the first and second quarters of 2024 showed gains over the prior year. During the first quarter of 2024, LMIC calculated a beef demand index of 129, compared to 124 for the first quarter of 2023. In 2022, the first quarter beef demand index was 135, the highest calculated value over the last two decades for the first quarter. During the second quarter of 2024, the beef demand index was 118, which was a tie for second highest with 2022 and behind 2021’s beef demand index value of 120. Despite the elevated retail beef prices, the beef demand index for the first and second quarters of 2024 is signaling robust demand.
Livestock Monitor pdf