U.S. Beef Traders Had A Prosperous Day On Tuesday On The Chicago Mercantile Exchange (CME)
Some good news in the stock market for U.S. Beef dealers on Tuesday. Cattle futures closed high for a second session on Tuesday. Analysts are saying the demand for beef is way up heading into the Labor Day Holiday.
One of the reasons for higher beef demand experts speculate, is due the African Swine Flu situation. Several countries in Asia have been dealing with millions of premature hog deaths due the virus. There are health concerns throughout the world due to the virus, with no end in sight, the fears are increasing.
Various retailers have increased their buying of beef ahead of the Labor Day holiday on September 2. U.S. Beef expert Alan Brugler of Brugler Marketing said the demand is higher than normal. He believes the Tyson Slaughterhouse in Holcomb, Kansas being out of commission due to a fire, has been a boost to all beef sellers.
The Department Of Agriculture (USDA) Announced That Current Beef Prices Are At A 2 Year High
The USDA said that ‘the boxed beef cutout BEEF-US-CH is up $2.57 at $241.70 per cwt. That price point is the highest it’s been in the last two years. Select cutout fell slightly this week by .25, but it’s up from 1 week ago at $214..27 per cwt from $200.58.
Brugler believes the higher prices will act as an incentive to processors to have more beef available. Especially since the Tyson slaughterhouse is still off line. There doesn’t appear to be a date in the works for the Tyson faculty to be reopened.
There are some rumblings from employees of the Kansas plant. They haven’t been given any clear cut answers as to when they can go back to work, they are receiving only a limited paycheck.
One employee said on Monday, that they were told if they filed for unemployment there are consequences. There are no guarantees for continued employment if employees file unemployment claims.
Last Week Cattle Futures Fell On The CME After The Tyson Fire News Came To Light
After the large fire that took down the Tyson Slaughterhouse, live cattle futures fell for fear of supply issues. However this week the beef futures seem to be back on track, and heading in the right direction said Brugler.
Live cattle has gained this week, due to more support because of positive expectations of high cash cattle this week. In spite of the ongoing saga of the African Swine Flu, lean hog futures remained rose a bit on Tuesday on the CME.
This is the second week in a row for the hog futures to rise, which Brugler thinks is decent news. The hog markets have been very shaky overall in the last year due to the Swine Flu Fever and the trade wars. Normally China would be baying heavily from U.S sellers, the trade issues have created a bit of a stall. Experts say the hog futures are holding their own and remain sturdy.