From a cash price perspective, both cattle and beef markets continue on a relatively bullish run the past few weeks. Meanwhile, winter weather has hindered feedyard performance this season.
From a cattlemen’s perspective fed cattle prices have been “just good enough” since the first of the year, only showing some spark as recently as last week with the nearly $3/cwt. move.
Focusing on carcass quality can allow feeder cattle buyers to factor in higher returns based on better-than-projected feedlot performance and/or carcass quality premiums than average.
Cattle feeders capitalized on a tighter supply of market-ready cattle last week, while packers came back with sharply higher bids as they competed to own inventory needed to fulfill boxed beef sales commitments.
Today’s weekly slaughter is much more robust than in 2015 and cattle supplies are at least adequate for the short term. Yet fed cattle numbers will certainly tighten as we move into 2023 due to the shrinking cow herd.
Through a consistent premium beef experience, the CAB brand provides economic incentives to cattlemen up and down the supply chain. The brand has adjusted the hot carcass weight (HCW) maximum to 1,100 pounds.
