So much for the winter blues. It’s been so balmy across part of the U.S. that Americans have been firing up their grills at a time that’s usually better suited to sipping hot cocoa.
U.S. consumers, buoyed by optimism about the economy as well as record warm temperatures in February, have been buying up burgers like it’s summertime. Beef is on a roll, with wholesale prices rallying to the most expensive since July. It’s surprising since the usual time for outdoor barbecues typically kicks off closer to May.
And it’s not just grilling that’s propping up beef prices. People are getting out the house more often to enjoy the weather, frequenting restaurants and ordering up premium cuts such as steaks. Overseas demand has also risen, with a boom in shipments to countries including Japan and South Korea. All that is chipping away at bigger production and drawing the interest of hedge funds. Money managers added to their bullish bets on cattle for the first time in four weeks.
“We really, in all honesty, haven’t had winter, and it has enabled a lot of grilling options to stay viable,” said Don Close, the vice president of food and agribusiness research at Rabobank International in St. Louis, where he’s seen February temperatures as high as 80 degrees. “We’ve got solid movement on the low-priced items and have preserved good clearance on high-end items.”
The gains for beef prices have boosted the cattle market. Cattle futures traded in Chicago capped a third straight weekly gain, rising 0.9 percent to $1.15975 a pound in the longest winning streak of 2017. Prices are little changed for the year. Grilling enthusiasts can thank higher-than-normal sea-surface temperatures in the western Atlantic and Gulf of Mexico for the spring-like weather. There were also more winds from the south blowing heat northward. As of March 3, 6,172 records were set for daily high temperatures over the last 30 days across the U.S., according to the National Centers for Environmental Information.
In contrast, there were just 281 cold records. The official first day of spring isn’t until March 20.
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