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Analysts disagree on current direction of beef demand
Some livestock market analysts speculate that weaker-than-expected consumer demand for beef has been a big factor in the recent cattle market decline.
They say shoppers are increasingly choosing cheaper pork and chicken as alternatives.
But Oklahoma State University livestock marketing economist Derrell Peel isn’t convinced that beef demand is falling.
“I don’t have a sense myself that demand has changed that much. I think this is largely driven by supplies,” Peel says. “We do have the increased supply in the market right now due to carcass weights. There’s a little imbalance in that mix of products because of these weights we’ve talked about and the fact that these cattle are very fat. But the product is moving through the system.”
Peel says he expects to see more retail featuring of beef in the coming weeks, which should help boost demand.
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