2006 Beef Business Bulletin Stories Archive
Cull Cow Prices
Cull cow prices this year mostly have been well below a year ago. Within a year, cull cow prices have a rather stable seasonal price pattern. This year, that pattern is expected to repeat, which indicates that the seasonal lows on cull cow prices are still ahead. Due to drought cow slaughter this summer in the U.S. was very large. The decline in coming months may be moderate by historical standards.
Normally in the Southern Plains, cull cow prices on a monthly basis are lowest in November. Prices usually increase from November into spring. Beginning in August cull cow prices begin to erode.
This year, due to large cow slaughter levels, cull cow prices in the Southern Plains peaked in February averaging about $52 per cwt. (85-90 percent lean cows). By August those prices were about $48 per cwt.
If the average (1996-2005) seasonal price pattern holds this year, cull cow prices in the Southern Plains would decline by about 15 percent between August and November. But, due to large U.S. cow slaughter in August, year-to-year increases are expected to moderate into the fall. For November the seasonal low may be in the low to mid-$40 per cwt. (85-90 percent lean cow).
Source: Livestock Marketing Information Center