Agricultural economists in the U.S. have billed beef cattle prices as performing positively of all commodities in a shrinking agricultural economy, popular as Ag economy. 

In a survey led by the University of Missouri, Ag economists concluded that beef cattle prices would be the highest in 2024 while those for dairy would be the lowest.

The bullish price outlook for beef cattle over dairy cattle is due to several industry-related factors. 

One of these was insufficient feed for dairy cattle in early 2023 due to floods, which left the sector struggling.  Although milk prices have risen as a result, the national average in 2023 is well below that of 2022. The 2023 prices are $17.75 per hundredweight ($0.403 a liter) while those of 2022 averaged $21.96 per CWT ($0.50 per liter). 

Pat Westhoff, director of the University of Missouri’s Food and Agricultural Institute (FAPRI) sees no surprise in the sector’s performance. He opined that given the increment in feed prices, dairy farmers had their milk prices “in the tank” in 2023.

The positive outlook on beef cattle prices, on the other hand, comes from oncoming low supply of meat. Ag economists predict a shortage of meat, including poultry, up to March 2024, which could keep beef prices high.

Current beef cattle prices in the U.S. have been rising by a few cents each month. In June, 2023, a hundredweight of live weight beef cow cost $172.85 and by September it had hit $179.09. 

The highest federal average was in July, 2023 when the price reached $292 per hundredweight  ($5.84 per kg) for a medium-sized cow. The prices conform to the  national average of $3 to $9 per live weight kg. 

The price climb began in the first quarter. By April, 2023, young cattle were selling $22 more per hundredweight than in Quarter 1 of 2022. 

Ultimately, there are other positive-looking commodities in U.S.’ Ag economy besides beef cattle, which include soybeans and sorghum. Rice, wheat and hogs, on the other hand, join dairy at the bottom of the list.