September 21, 2006

Cattle prices fall as animal supply rises

Cattle prices fell to a six-week low in Chicago as increased animal supplies are expected to surpass demand. 

Wholesale choice beef prices have fallen 6.8 percent since reaching a three-month high on Jun 8, according to government data

With summer grilling over, demand is expected to slow towards the end of the year.

Prices for the most-active contract have fallen 6.1 percent from a seven-month high in early Sept as supplies of cattle increased and total beef tonnage rose with higher slaughter weights.

Even though energy prices have fallen sharply in the past two months, it would take time to improve consumer demand for beef, analysts said.

When beef prices are too high, supermarkets would try to push pork or chicken sales until prices decline, Wilson said.