While it’s likely the U.S. cowherd is generally of higher quality than it was a decade ago, today’s smaller herd presents an opportunity for ranchers to take another step forward with quality and management.
Light cattle sales volumes were recorded in all regions during Thanksgiving week with cash prices generally $1 lower than the previous week, marking the fourth consecutive week with lower cash prices.
Prices for market-ready cattle have tumbled $7 to $8 per cwt. since the beginning of the month even as supplies remain relatively tight. Volatility continues in the futures market.
Cattle feeding margins decline even as fed steers trade steady to higher for the week. Packer margins erode on weaker wholesale beef prices. Pork producer margins improve but remain underwater.
Cash trade was light as many cattle feeders passed on steady bids. Feeder cattle and calves traded mixed. Live and feeder futures contracts posted weekly gains.
A large contract foodservice company claims the nation’s largest beef packers conspired to fix prices and drive up profit margins from 2015 through 2021.
Projected breakevens for cattle placed on feed have declined $10 per cwt. over the past month. Pork producer margins are declining even with feed costs 23% lower than last year.
