Markets
A mid-January deep-freeze failed to deliver any bounce to cattle markets as packers appear flush with formula and contracted inventories. Friday’s Cattle on Feed report fell within expectations.
Brutal winter weather disrupted cattle markets and significantly curtailed cattle harvest in western Kansas. Cash cattle trades were steady to lower while wholesale beef prices posted a significant rally.
After reaching a peak price in August, cull cow and bull prices moved higher to end the year on a positive note.
A year ago feeders were concerned about weathered cattle and tough pen conditions and how at times it would be the motivation for sellers to take the market. It’s eerie how not much has changed in that sense.
The beef market is set to rapidly adjust to changes in consumer buying habits. This removes demand pressure from ribs and tenderloins, realigning the contribution of those cuts to a smaller percentage of carcass value.
2023 was a lower year for all the grains as the market went through a commodity reset similar to 2013. What’s ahead for 2024?
The final week of 2023 found at least three bidders in the market in multiple regions.
AgDay TV Markets Now: Brad Kooima, Kooima Kooima Varilek, recaps a record year in the cattle market and discusses if new highs are possible in 2024.
Feedyards saw higher cash cattle bids for the second consecutive week as the market closed the year on an upswing. Futures prices finished the week lower.
Volatility contributed to a strong basis early last week and cash traders benefitted by waiting until late week to sell cattle.
Cattle prices were weaker on the week with volatility in the futures markets and the season’s first cold spell on the way. Wholesale beef prices traded higher seasonally.
Fed cattle trade posted gains last week, but the rally was not incentivized by wholesale beef prices, but rather pushed by limited supplies of ready cattle.
Cattle futures rallied to all-time highs on Friday after Thursday’s sell off, supporting negotiated cash prices that reported mostly steady for the week.
As the futures continued to grab new ground throughout the week, cattle feeders continued to find confidence in higher asking prices.
Profit margins for cattle sold for slaughter last week declined $55 per head, according to the Sterling Profit Tracker.
Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.
Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs
Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.
Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.
Cattle feeding margins jumped nearly $17 per head higher last week to average $196.50.
The increase in margins was the third consecutive weekly gain, leaving average profits above $230 per head.
After two weeks of losses, cattle feeding margins are back in the black.
Cattle feeders began the New Year with black ink on their closeouts, but profits were minimal
Whether you’re cattle feeder or packer, ledger sheets are full of red ink.
Cattle feeding margins declined $45 per head last week, leaving average per head losses at more than $77.
Cattle feeding margins improved nearly $25 per head last week, but average per head losses remain more than $32.
The pain eased somewhat for cattle feeders last week, but losses remain more than $170 per head.
It was another ugly week for cattle feeders.
Beef packers put away the red ink last week as they turned modest profits on every animal processed. Feedyard margins, however, slipped a little further away from positive.
Cash cattle prices dipped nearly 50 cents per cwt.