November Market Update
As we’re heading into November, even though we haven’t seen any breaks in the market, there’s a glimmer of hope in that we have not seen as incredibly high week over week pricing increases during the month of October as we did during the summer. Demand for Prime is staying strong, and there’s a new player in town – China has been buying huge quantities of US beef, which could potentially effect supply going into next year. Keeping in mind that the Choice Beef market is the bulk of beef available in the Country (70% of graded beef is choice, versus just 7% at Prime), there’s a lot of talk of how pricing has finally dropped…. And it has dramatically in the Choice market. For all of us in the Prime world, we’re still getting squeezed.
It’s hard to gauge what will happen between now and the end of the year, I still think to be safe we should assume another round of increases next month. Hopefully I’m wrong!!! But as we’ve all seen this year, who knows what to expect, all our crystal balls broke back in the summer!
In the meantime, like I always say, we are more than happy to jump on a call and answer any questions you might have, so please never hesitate to give us a ring, my cell is 415-205-2759, and Dad is at 415-819-4366.
Choice Market Cooling, Prime Still on Fire
Despite talk of the beef market “cooling” (aka prices trending downward), that trend exists solely within the Choice market. Prime beef pricing has seen modest increases the last few weeks, a welcome change from the exponential rises experienced earlier in the year.
Chinese Demand Soars
A growing appetite for US Beef in China, combined with souring relations between China and Australia, has led to record breaking export of US Beef abroad. Though a boon for anyone in the export business, this could cause domestic supply issues if this pace keeps up.
Everyone hears about it daily, but a shortage of labor continues to plague the food industry.