USDA: Beef Sector On Its Way Back To Normal

The beef industry is on it's way to getting back to normal. After plant closures and slow downs this spring, USDA Outlook Board Chairman, Mark Jekanowski said slaughter capacity is approaching pre COVID levels.

"There is still however a backlog of cattle that would have been slaughtered in March or April that continues to hang over market today although the industry has been working through that backlog."

But, Jekanowski noted, the damage is done. This year's beef production is projected to be down 0.5% from  last year, the first yearly decline in five years. For 2021 Jekanowski says the beef industry could see a 3% bounce back, but it's still hard to predict what's going to happen in the beef market; too much uncertainty about demand.

"But we're in a lot better place now than we were a few months ago."

Steer prices are crawling back up and can average around $107 CWT this year, and he expects that trend to continue into 2021; increasing roughly $2.50 next year.

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