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.
Profitability for both cow-calf and feedyards is projected to improve in 2021, Sterling Marketing president John Nalivka told AgriTalk host Chip Flory.
Fed cattle prices have steadily increased since the second week in September, adding roughly $7/cwt. to the short-term low at that time. Last week saw early trade mostly at $108 to $109/cwt.
Average cattle and hog finishing margins are both positive for the third consecutive week, according to calculations in the Sterling Marketing Profit Tracker.
Producers who had the patience to hold out until Friday trade were rewarded with higher money, and packers remain hungry for cattle.
Cull cows represent about 20% of the gross income in commercial cow calf operations, so understanding the major factors impacting cull cow prices is important to your bottom line.
There are many dynamics in cattle slaughter markets in the fourth quarter that will determine total slaughter for the year, but an early analysis suggests a 2.5% decline.
At a point in history when a novel virus dominates the news cycle and impacts our lives daily, another novel virus has emerged in the United States – this time, in the cattle population.
A fall rally in cash fed cattle markets has added $5 to $6 per cwt. over the past three weeks. Feeder cattle remain in moderate demand, but drought conditions across much of the Great Plains is affecting cattle markets.