Beef packers could be moving into a period with smaller inventories, which may prompt them to push prices higher. CME futures prices will again have an impact on the cash trade.
The onset of the COVID-19 hit the livestock industry especially hard. A sudden loss of demand caused prices to plummet. But thanks to the ability to pivot quickly, livestock producers showed resilience in 2020.
Cattle feeders found higher prices as 2020 came to a close, but their ability to push the market higher may hinge on how Live Cattle futures perform in the first weeks of the New Year.
Cattle feeders gained enough leverage to push negotiated cash cattle prices higher during both holiday weeks as 2020 drew to a close. Supplies of fed cattle will tick lower during the first quarter of 2021.
The editors at AgWeb.com are looking at experts’ projections for commodities in 2021 to help you succeed in the coming year. Here’s a look at what analysts expect for the upcoming year in the protein segments.
Cash cattle in the South traded steady, and futures contracts had a decent week but packer needs during the holidays seem to have more of an effect than the futures market.
Fed cattle treaded steady in the South to weaker in the North, with wholesale beef prices posting additional declines for the week. Friday's cattle on feed report was as advertised and will be viewed as neutral.
On a percentage basis, beef packer margins declined significantly last week. It's all relative, of course, since the starting point from the previous week was stunning.
