U.S. beef packers including Tyson Foods and Cargill are racking up historically high margins, thanks to slumping cattle prices amid a supply glut and as Americans turn to beef for their backyard summer barbecues.
U.S. cattle producers are in the midst of aggressive expansion. Just as severe drought from 2010 to 2012 reduced numbers to 60-year lows, record-high prices in 2014 and abundant moisture are encouraging ranchers to rebu
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.