May 3, 2010

US cattle slaughter up on higher beef prices

US cow slaughter since the beginning of March has progressively been higher each week than year ago levels, as producers tried to capitalise on the high prices for cows and cow meat in order to offset difficult financial situations rather than expanding or rebuilding operations.

While overall cattle slaughter for 2010 is projected to be lower, the current increase in cow slaughter at the moment is unlikely to offset a decline in fed cattle production. The higher cow slaughter is unlikely to be sustained coming up to the summer months.

Despite higher US domestic beef supplies, the drop in imported beef and the continuation of spot trading among US end-users have helped to keep manufacturing beef prices in the US well above year ago levels.