January fed cattle prices traded in a very tight range around $110/cwt. with last week’s CattleFax average steer price up to $112.50/cwt.
Jan. fed cattle prices are normally choppy and we’re seeing that pattern in 2021. A primary difference, compared to 2020, is that last week’s average price is $14/cwt. lower, the same discount as the 5-year average.
Diving right in to the new year, we’ve already met some seasonal expectations in both cattle and beef prices.
We can’t count all the reasons why 2020 needs to find a hasty exit, but at least we can hope that a new year will bring on new dynamics for the cattle industry.
The first shipments of the Certified Angus Beef ® (CAB®) brand arrived in China in November, ushering in the potential for a new, powerful buyer for high-quality U.S. beef.
In the last CAB Insider, we reported on a rapidly retreating fed cattle market scenario. However, much has changed in the two-week interim.
The fed cattle price recovery that has been painstakingly built since early September has eroded in an extraordinary decline over the past two weeks.
Fed cattle prices have steadily increased since the second week in September, adding roughly $7/cwt. to the short-term low at that time. Last week saw early trade mostly at $108 to $109/cwt.