Markets
Darren Frye, Water Street Solutions, says corn, wheat and hogs reacted negatively to the 25% tariffs being imposed on Canada and Mexico on March 4.
Beef packers saw losses of $195.60 per head and pork packers saw losses of $1.41 per head.
Total beef cattle harvest last week was slightly larger than the prior week at 563,000 head, an increase of 2,000 head.
The total U.S. feedlot inventory on Jan. 1, 2025 was 14.297 million head, including 2.474 million head in feedlots with capacity less than 1,000 head.
Cash cattle decreased slightly at $202.85 per cwt., while lean carcass hog prices came in higher at $89.67 per cwt.
Cash cattle decreased slightly at $207.25 per cwt., while lean carcass hog prices came in slightly higher at $85.78 per cwt.
CattleFax released its annual price projections at CattleCon and expects cattle prices to stay strong for a while.
Cash cattle remained steady at $209.97 per cwt., while lean carcass hog prices came in slightly higher at $85.56 per cwt.
Cash cattle averaged $210.22 per cwt., up $6 from last week, while lean carcass hog prices came in slightly higher at $82.71 per cwt.
Live Cattle and Feeder Cattle futures prices have been forced higher as Live Cattle contracts had been lagging negotiated values until recent days.
With no post-holiday wavering, all cattle and beef markets moved higher in the first half of January – setting new record price levels to start the new year.
Cash cattle averaged $204.12 per cwt., up from last week, while lean carcass hog prices came in at $81.79 per cwt.
Cash cattle averaged $202.96 per cwt., up from last week, while lean carcass hog prices were slightly down at $81.08 per cwt.
Now in mid-January, the cattle markets are showing exceptional optimism. Packers were actively bidding to capture spot market needs.
November was an exciting month for U.S. red meat, with year-over-year gains across all categories.
Cash cattle averaged $199.48 per cwt. while lean carcass hog prices were at $81.79 per cwt., both up from last week.
Brad Kooima of Kooima Kooima Varilek in Sioux Center, Iowa, says cash fed cattle trade hit record highs last week and could be steady to even a bit higher again this week. Historically tight supplies continue to support the rally.
Brad Kooima of Kooima Kooima Varilek says cattle futures recovered nicely from Friday’s selloff with some contracts making new highs for the move, pricing in record cash cattle trade. Grain markets are seeing fund buying with soybeans and meal leading on dry weather forecasts for Argentina.
Cash cattle averaged $195.68 per cwt. while lean carcass hog prices were at $81.02 per cwt., both up slightly from last week.
Looking back, 2024 was mostly a continuation of the story that has been developing since 2022.
Cash cattle averaged $194.99 per cwt. while lean carcass hog prices were at $80.35 per cwt.
Last week’s federally inspected cattle harvest was 5,000 head smaller than the prior week and 38,000 head smaller than the same week a year ago. A large contribution gap between classes of cattle in the harvested total remains in place.
The packer/feeder margin spread grew this week in favor of the feeder at $285 per head while pork producers found positive margins of $39.77.
Calf and feeder cattle prices have been much more active in the past three weeks with two market-moving events, including precipitation in the central states and the temporary closure of the southern border due to screwworms.
Packer margin losses grow, with beef packers at a loss of -$91.33 per head and pork packers averaging losses of -$5.87 per head.
Packer margins remain in the red for beef at -$60.29 and stayed similar for pork.
The latest Cattle on Feed report showed feedlot inventories on Nov. 1 were 11.99 million head, equal to one year ago. Heifer retention still affecting herd rebuilding.
Margins widened this week this week for pork and beef producers while packer margins remain in the red for beef at -$34.67 and decreased for pork to $8.65.
Last week’s harvest averaged 100,000 with except of Veteran’s Day holiday. Feeder cattle demand elevated after widespread precipitation throughout much of the winter wheat grazing region.
“The agricultural economy is inherently cyclical, and ag lenders are navigating the changing conditions across the sectors they serve,” said Jackson Takach, chief economist of Farmer Mac.