Markets
Last week’s fed cattle trade was highlighted by sales late Friday that featured substantially higher prices as packer demand for spot market cattle pressed prices higher in all regions.
The Sterling Marketing Beef Profit Tracker shows current breakeven price in the $170s/cwt compares to $200/cwt for currently placed cattle.
February report confirms cattle on feed, placements and marketing statistics all down.
While tariffs are negative for grain and hog producers, tariffs on U.S. beef and cattle imports have a net effect of tightening supplies and that’s price positive.
Check out the Sterling Marketing’s Profit Tracker ending for week of March 14.
Total beef cattle harvest last week was up 12,000 head from the prior week at 578,000 head, 6,000 head fewer than the same week last year.
Feedlot margins jumped from $198 to $366. Choice steers were up slightly to $201.
Brad Kooima of Kooima Kooima Varilek says live cattle see buying interest after strong cash late last week. Corn tries to hold gains with soybeans seeing South American harvest pressure and concern about China’s 10% tariffs on U.S. soybeans.
Choice steers down $2 from last week with feed costs up. Packer margins still in red.
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.