Progress appears slow in erasing the backlog of cattle in America's feedyards, and carcass weights averaging 4.2% heavier are the equivalent of 21,000 more cattle coming to market than last year.
While any tally of cattle waiting on shackle space is – at best – an estimate, an analysis of Cattle on Feed and slaughter data suggests estimates of 1 million cattle backlogged may be overstated by as much as 50%.
While any tally of cattle waiting on shackle space is – at best – an estimate, an analysis of Cattle on Feed and slaughter data suggests estimates of 1 million cattle backlogged may be overstated by as much as 50%.
Adding value and capturing that value (making money) versus adding value and losing value (losing money) is largely a function of your break-even price.
This first full-week following the Memorial Day holiday delivers signals cattle markets may see a second wave of downward pressure, the after-shocks of the COVID-19 earthquake.
Data from USDA's monthly cattle on feed reports and rising feeder cattle prices in July suggest cattle feeders have pen space to fill and the backlog of cattle is now diminishing.
Packers should be back to six-day work weeks now that we are through the July 4th holiday, but an abundance of protein in the system should be expected to hamper cattle markets this summer.
The downward spiral in the cash cattle trade is ongoing as the number of market-ready cattle continues to grow. Showlists are already overburdened to date, and market-ready cattle add to the list weekly.
