Despite record high cattle prices, indications are the cattle herd is still shrinking.
A $1 per cwt rally helped boost cattle feeding profits marginally last week while packers lost a little off their large margins.
Cattle futures climbed for the first time in three days on signs of increasing demand from U.S. meat processors.
Feedyard margins improved last week despite a $3 per cwt. decline in cash cattle prices.
Cattle prices held firm as slaughter numbers increased and wholesale beef prices declined, though narrowing packer margins will place added pressure on markets in the weeks ahead.
Meaningful change isn’t accomplished overnight. More often, it happens slowly by chipping away piece by piece until something new suddenly takes shape.