Momentum continues to shift in cattle markets with strong feeding margins and tightening supplies. Pork producers continue to struggle with negative margins.
Cattle feeders have experienced their best month in years with prices reaching record levels. Hog producers, however, are struggling to keep margins out of the red.
If a seasonal price decline develops as anticipated, this year’s starting point for cattle feeders is the best in a decade. Pork producers notch their second week of modest profits.
Profit margins for cattle feeders and packers continue pacing in opposite directions as shrinking supplies of market-ready cattle drive negotiated cash prices higher.
Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.
Wholesale beef prices continue to support packer margins even as negotiated cash cattle trade well-above the five-year average. Pork producers enjoy a market rally that has lifted margins out of the red.
