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CattleFax predicts higher cattle prices in ’13

Fed cattle prices are expected to average 126 dollars in 2013, with a range of 114 to 138 dollars.

CattleFax senior analyst Kevin Good made that prediction at the recent Cattle Industry Convention in Tampa.

“Last year we averaged 123, so that’s a 2.5 percent increase in price,” Good said. “We think wholesale values are going to be up close to four (percent).  We think retail values are going to be up close to four.”

As for yearling and calf prices, Good says, “if we’re right in assuming that corn values will dissipate, especially in the second half of the year, it would put yearling values—a seven-and-a-half weight steer, on an annual basis—at 155.  That’s a five percent improvement compared to this past year.

“It would put calf values around 175—and that’s a five percent improvement compared to this past year.”

But Good says if there is bumper crop and corn goes to three or four dollars, the topside is unlimited in yearlings and calves.

AUDIO: Kevin Good-presentation at CattleFax Outlook session on 2/8/13 (22:17 MP3)

  • I agree with your assessment except for one thing—what about the economy? If the economy improves, I can see cattle prices moving up but, if we slip back into a recession it may not happen and could even go the other way. Consumers don’t have to buy beef. At this point, I think we could slip back into a recession. Why?— I just drove by the gas station and gas prices went up from $3.55/gallon for regular gasoline to $3.65/gallon–overnight! We can’t afford those kind of prices!

    Paul W.

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