Beef Export Demand Expected to Strengthen as Stocker, Feeder Cattle Rally

The cattle markets are poised for a sustained spring rally based on the latest cash cattle trade data, with key figures like negotiated cash cattle prices and Choice boxed beef cutout prices trending higher amidst likely 30-year highs in April wholesale beef demand. Despite a lot of rising feed costs, demand remains steadily higher for grazing calves and feedlot-ready cattle, according to recent market pricing data. There’s reason to believe the price strength could continue based on beef export projections; while the first two months of 2021 have seen slightly lower beef exports than the previous pace, those exports are expected to increase “modestly” over 2020 numbers as major buyers of U.S. beef like Japan and South Korea expected to resume purchases similar to past years. See more on the beef export picture.