Strong Beef Demand Pushing Fed Cattle Prices Higher

As the U.S. continues to emerge from the COVID-19 pandemic, beef demand looks to be higher than normal heading into the already high-demand summer grilling season that normally kicks off around Memorial Day. While it’s a reflection of growing consumer confidence emerging from the worst of the pandemic, it’s also a welcome occurrence for producers fighting skyrocketing feed costs. Industry analysts say even as fed cattle prices surge, overall herd contraction as a function of the broader cattle cycle — which has already been underway for around a year — will likely continue. Export demand could also begin contributing even more demand as U.S. beef remains an attractive option on the global market because of a weak U.S. Dollar index. See more on the current state of the fed cattle market.