Whats Behind the Cattle Price Fluctuations?
US – Last year, cull cow prices were at a record high despite the relatively large beef cow slaughter levels. Beef cow slaughter was high due to a drought in several cattle-producing regions of the U.S., including North Dakota, and sharply increasing input costs, such as feed, fuel and fertilizer. However, cow prices have averaged about $5 per hundredweight (cwt) lower than last year. In mid-July, cow prices finally reached levels similar to last year, writes Tim Petry, a North Dakota State University economist. According to him, there are several reasons for lower prices for the first half of this year. Although beef cow slaughter has been lower, total cow slaughter has averaged about 3 percent higher than in 2008. The dairy industry has suffered with very low milk prices this year and dairy cow slaughter has been about 15 percent higher than last year. Increased milk production and lower domestic and export demand due to the weak world economy have caused weak prices. A Cooperatives
