Geopolitical developments continued to influence commodity markets last week, with oil prices remaining a key driver. According to The AG Center, crude has retreated to levels seen before the conflict, and gasoline and diesel prices are expected to follow if oil remains near US$ 70 per barrel.
Early sales in the north at US$/cwt 260 live and US$/cwt 408 dressed were followed by Friday trades at US$/cwt 260 live and US$/cwt 410 dressed. In the south, late-week business was reported at US$/cwt 258 live, although some sellers declined those bids. Overall, prices were generally steady in the north and US$/cwt 2 lower in the south.
Trading volumes were light, while slaughter is expected to be reduced again in the coming week.
Weekly slaughter totaled 537,000 head, up 11,000 from the previous week but still 24,000 below year-ago levels. Processor margins came under renewed pressure late in the week as boxed beef prices weakened sharply.
According to The AG Center, the softer boxed beef market is likely to affect trading this week as inventories are adjusted ahead of next Friday’s holiday. Supplies of finished cattle are expected to remain tight, leaving producers with some negotiating leverage. However, the report warned that processor losses approaching US$ 300 per head are not sustainable over the longer term.
