Packers have leverage on cattle feeders due to several market ready cattle being available, but cattle feeders being current with marketing and stronger live futures provide them short term wiggle room.
By the numbers, cattle producers with summer stockers and cow-calf operations should be experiencing a bit less stress about the market this year.
Steady to $1 higher cash fed cattle prices upped cattle feeding margins $20 per head to $194, according to the Sterling Beef Profit Tracker.
Packers have held leverage over cattle feeders for several weeks now and have been able to push prices lower.
Cattle feeders recorded their seventh consecutive week with positive closeouts, maintaining profits north of $150 per head for the week ended Jan. 6.
Feedlot closeouts continue ending on positive notes.
Cattle feeders turned a profit for the eighth consecutive week.
Meaningful change isn’t accomplished overnight. More often, it happens slowly by chipping away piece by piece until something new suddenly takes shape.