According to the most recent numbers, beef production has seen an unexpected uptick of 3.0 percent for the year to date. Factors surrounding this rise may impact the timing and total production for 2016, says Dr. Derrell Peel, Oklahoma State University Extension Livestock Marketing Specialist.
Peel traces higher production levels to an increase in cattle slaughter spurred by faster feedlot turnover rates. However, while production has gone up, carcass weights have dropped.
While the current decrease in carcass weights is consistent with seasonal trends, Peel notes a fundamental transition in feedlot behavior to faster turnover rates. Peel hopes this faster marketing pace will serve to avoid a crash later in the year. He says steer and heifer market weights in the next few weeks will be a good indicator of beef supply conditions in the second half of the year.
Source: Drovers. More Beef Now – Slower Increase Later