One provision of the new tax plan drawing sharp criticism is the elimination of the deduction for personal loss from natural disasters such as wildfires, unless the event is a federally-declared disaster.
Friday’s report is anticipated not only for the information that enables market analysts to estimate slaughter cattle supplies, but also because the January report was unpublished due to the government shutdown.
Anecdotal evidence and supply observations suggest packers have recently had a negotiating advantage over feedlots. Packer margins continue to be wide and the supply of cattle on feed continues to be high.
Despite calf demand support, freshly weaned steer and heifer values have the potential to fall below $750 and $650 per head respectively which would equate to prices declining $5 more per hundredweight.