Economic Indicators: January 2010
By Drovers news staff
| Friday, January 15, 2010
Beef’s economic indicators stumbled to the end of 2009, a year that was most unkind to both cattle feeders and packers. Lackluster consumer demand continues to hold a lid on cash fed-cattle prices and boxed-beef prices, in turn keeping feedyard margins and packer margins in the red. Just three of the eight arrows pointed higher last month, with two arrows pointing sideways and three pointing lower, according to Drovers’ monthly analysis. Production costs saw improvement, with lower grain costs and a steady steer-corn ratio. Packing and processing earned an upward arrow due to significant improvement ($36 per head) in packer margins, although they remain in the red. Sterling Marketing projections suggest improvement for beef’s economy may come in the weeks ahead, with slightly higher cash cattle prices and improving packer and feedyard margins.
