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 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.
Cash cattle trade began on Tuesday last week, but bids were scarce even at lower money. Some feeders held strong for higher money, but with the decline in the CME board a higher market never surfaced.
Cattle and hog finishing margins were modestly positive the first week of December, marking the 11th consecutive week of profitability. Packer margins remain historically high.
