Markets
USCA calls on the USDA and the CFTC to “convene cattle market participants to discuss concerns related to price transparency and true price discovery.”
Brazil’s agriculture minister says Indonesia has authorized beef exports from 10 Brazilian meat packing plants.
U.S. Ag Secretary Sonny Purdue has directed USDA’s Packers and Stockyards Division to launch an investigation into recent beef pricing activity.
Citing heightened concerns about environmental preservation and sustainable beef production, JBS SA is using satellite technology to monitor suppliers.
Poor performance from CME futures on Friday limited what cattle feeders could gain back on the cash market from the declines over the last few weeks.
U.S. cattle on feed totaled 11.1 million head in USDA’s August 1 inventory, which was slightly higher than the same period a year ago.
While the fire was unfortunate, the industry suffered more from an over-reaction by cattle markets in the week immediately following the fire.
Packers were hesitant to offer a bid on cattle early last week, and after a $5 decline, feeders still have many unanswered questions about the impact of harvest capacity.
Kansas Gov. Laura Kelly says the fire at Tyson’s beef facility will affect many individuals and businesses in the beef industry that fuels western Kansas, and offered the state’s support.
In a head-scratching week of data, estimated cattle slaughter was 9,000 head higher following the Tyson fire, cattle prices were down 5% or more, and yet wholesale beef prices rose 9%.
AgriTalk host Chip Flory and Drovers editor Greg Henderson discuss the impact of the fire at Tyson’s facility in Kansas and the impact on cattle markets.
Cattle markets continued reeling Tuesday as both CME Live Cattle and Feeder Cattle set contract lows following Monday’s locked limit-down performance.
Packer participation in the cattle market was an issue even before Friday night’s fire at Tyson’s Holcomb, Kan., beef packing facility.
Fed cattle trade was slow to develop in the southern plains with packer bids falling $2 short of steady. Feeder cattle traded at uneven prices across the nation.
The indefinite closure of Tyson’s Holcomb, Kan., facility creates the potential the cattle “marketing pace will slow down and carcass weights will increase.”
For his leadership to the beef industry and dedication to raising quality cattle, Jerry Bohn will receive the 2019 Feeding Quality Forum (FQF) Industry Achievement Award later this month.
Feeder steers sold steady to $2 higher, with instances of heavier cattle selling $6 to $7 higher in special sales in the Southern Plains.
Packers enjoyed a comfortable inventory last week, and many have stopped Saturday harvests, which helped push cash cattle prices $1 per cwt. lower.
Cattle feeders’ perseverance paid dividends as they held out for steady to higher cash trade in all feeding regions.
Providing shade and cool water, and only feeding or working cattle in the cool of the day can prevent solar radiation and the damaging effects from an elevated heat load.
The fluctuation in the cash price in this trade seemed to be mostly dependent on the location of the cattle, with prices ranging from $114-$116, with dressed trade at $182-$185.
Over the next few weeks patience and a calm trigger finger could be profitable to the cattle feeder as the supply of market-ready cattle declines.
Brazilian reporters claim JBS SA has been buying cattle from ranches grazing cattle on deforested land in the Amazon, a practice forbidden by the Brazilian government.
Cattle feeders were hopeful that last week was the bottom of the decline in cash cattle prices, but a negative corn report helped prices even lower.
Cattle markets remain under pressure, though good demand was evident on heavier feeder cattle in the northern Plains.
Cattle feeders continue to search for a bottom to the fed cattle market, but the seem to have little leverage to stop to slide.
Tyson Foods’ executives told investors its beef margins are benefitting from a structural shift higher due to both domestic and global demand growth and a favorable supply of cattle.
Packers were able to keep the market suppressed as the trade began last week at $2 back of the previous week.
Fed cattle trades were few and far between last week, with most bids lower and packers seemingly uninterested.
