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.
Following beef quality grade trends may not be as exciting as college football, but for beef marketers quality grade is the game and this season is nothing short of dynamic.
More Select grading carcasses and fewer Prime goes against what beef customers desire. To offset this drop, end users have adopted a new chilling method to increase reserves before prices soar.
Late fall holiday demand heats up the cattle market, and that’s when high-quality carcasses get extra bragging rights. Demand alone doesn’t spur prices higher, there must be a degree of supply constraint.
Even though prices have been exceptional for calves and feeder cattle, feedlot breakeven projections are rapidly moving higher, discouraging ranchers to consider retaining ownership.
Reviewing cattle placement in feedlots this year suggests that fewer fed cattle supplies expected in the fourth quarter along with much higher costs of gain will hold carcass weights below a year ago.
Fundamentals for fed cattle are steadily at odds so far this summer with very “green” fed cattle in the northern tier of the feeding region. Feeders are pushing show lists to take advantage of the summer high.
