Cash fed cattle prices ended last week $10 per cwt. lower than last year while the beef cutout closed $16 higher than the same week a year ago. The result? Packer margins $314 per head more than last year.
Cattle and hog finishing margins remain positive for the sixth consecutive week, but cash prices for both declined modesty last week and margins eroded.
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.
Last week’s early winter storm exposed cattle to cold, wet conditions, but also brought much-needed moisture to the nation’s wheat belt reviving prospects for winter grazing.
Wide regional variations in prices for fed cattle were found this week and the cash trade was slow to develop. The season's first winter storm affected the sales and movement of both fed and feeder cattle.
Both cattle feeding and hog finishing operations found modest profits for the fifth consecutive week calculated on a cash basis, according to the Sterling Profit Tracker.
A large winter storm is advancing across the central U.S. bringing cold temperatures and some much-needed moisture. Feedlots continued to build inventory during September leading to a record inventory for Oct. 1.
