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“The finished cattle market continues to push higher, and it is showing no signs of retreat,� he says. “One interesting comparison is that the price of a finished steer today is currently higher than the CME feeder cattle index just 11 months ago.

“Thus, a 1,450-pound steer would be valued between $3,500 and $3,600 per head, while an 800-pound steer last September had a value less than $2,000 per head,� Griffith added.

Griffith says good beef demand has provided support for cattle markets.

“Wholesale boxed beef prices did not slow their August surge this week,� he says.

“It has been said in this report that there would be support in the beef market from Labor Day purchases, and some of the increasing price the past several weeks is certainly due to the last summer grilling holiday of the year. However, with only one week to go before Labor Day weekend kicks off, it is difficult to say all of the strength in the beef market is due to consumers making beef purchases solely for Labor Day,� Griffith added.

Beyond the seasonal trend, Griffith says beef demand has been good overall.

“In fact, strong beef demand in general is the most likely reason beef prices continue to push higher at the wholesale level and thus the retail level.�

In addition to demand, the tight cattle supply provides support as well.

“There is always a supply side and a demand side to the story,� Griffith says. “The supply of cattle is low relative to previous years, and this has reduced beef production modestly. The smaller cattle supply has had more impact on cattle prices increasing than on beef prices increasing since beef production is still strong.�

Griffith says several things could be contributing to robust beef prices.

“The main instigator of higher beef prices is demand,� he says. “What all is fueling that demand can be debated, but the fact demand is strong is not debatable.�