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.
Negotiated cash cattle traded started at higher money mid-week, but in their rush to move cattle some feeders agreed to lower prices and the week ended on a softer note.
The post-Thanksgiving negotiated trade was mixed, with higher prices mid-week, falling off $1 to $2 by week's end. Feeder cattle sold uneven, $2 lower to $3 higher.
The first shipments of the Certified Angus Beef ® (CAB®) brand arrived in China in November, ushering in the potential for a new, powerful buyer for high-quality U.S. beef.
Cattle and hog feeding operations saw their margins remain modestly profitable last week with little movement in cash prices. Both cattle and hog feeding margins are higher than last year at the same time.
The Choice beef cutout price has rallied nearly $30 in November while cash fed cattle prices have gained just $5. As a result, packer margins have increased while feeding margins struggle to remain above water.
Cattle and hog finishing margins are both modestly positive for the seventh consecutive week, though hog margins saw a slight decline with lower lean carcass prices.
Did outside factors or did cash trade cresting at $110 create the sell off Friday? This week’s cash bids from the packer might be the best answer to that question.
Market analysts see signs that feedyards have significantly reduced the COVID-19-induced backlog of cattle and are regaining currentness, also a key factor in the recent market rally.
