A part of the 2021 Cattle Industry Convention and NCBA Trade Show this week in Nashville, Tennessee was the CattleFax Outlook Seminar. And during the event, CattleFax said their forecast is for record beef demand along with prospects for tighter supplies. Southeast AgNet’s Randall Weiseman caught up with Kevin Good, vice president of industry relations and analysis at CattleFax, to talk about these factors along with their forecast for cattle prices.
Good forecasted the average 2022 fed steer price at $135/cwt., up $14/cwt. from 2021, with a range of $120 to $150/cwt. throughout the year. All cattle classes are expected to trade higher, and prices are expected to improve over the next three years. The 800-lb. steer price is expected to average $165/cwt. with a range of $150 to $180/cwt., and the 550-lb. steer price is expected to average $200/cwt., with a range of $170 to $230/cwt. Finally, Good forecasted utility cows at an average of $70/cwt. with a range of $60 to $80/cwt., and bred cows at an average of $1,750/cwt. with a range of $1,600 to $1,900 for load lots of quality, running-age cows.
According to Good, wholesale beef demand will be softer in 2022, as a bigger decline in beef supplies will offset a smaller increase in beef prices with the cutout expected to increase $5 to $265/cwt. Retailers and restaurants continue to adjust prices higher to cover costs. He added the retail beef prices are expected to average $6.80/lb. in 2021 and increase to $6.85/lb. in 2022. To learn more about the CattleFax Outlook Seminar click here.