As demand for meat has increased over the last few weeks, there has risen a divide between meat packers and producers.
Retailers are seeing the product move very quickly and retailers are willing to buy the product at a hire price to keep their shelves stocked. Packers are then left in the middle wondering if the prices they are paying for cattle warrants the prices they sale the meat for. It is important to note boxed beef prices did increase, but live cattle futures dropped.
The initial uptick seen in the markets may not last due to consumers stocking up on meat. Bill Havertape with 88 Hedge says, “All this front loading of meat demand caused that huge surge in wholesale prices. That has shut off and this thing is absolutely plummeting.”
