Auction markets noted firm demand and a stronger undertone last week for grazing cattle with spring now less than a month away. Auctions were in full-swing again after the previous week's winter storms.
Livestock auction markets are built on relationships, but for LMA member market owners and employees, the importance of relationships isn't limited to sale day.
Packers, as usual, were in a position of leverage and needed very little cattle for the next week’s harvest. This continues to be the biggest problem with driving the cash price higher.
Cattle numbers will continue to contract in 2021, and producers will gain leverage on packers and retailers and margin distribution will be more equitable, according to CattleFax.
U.S. beef exports are expected to increase modestly in 2021 to reach the second highest level behind the 2018 export record. A key to export growth includes continued growth in the China/Hong Kong market.
Beef packers continued to maintain their strangle-hold on the market this week. Rising boxed beef cutout prices will pad packer profits – likely to exceed $400 per head.
Researchers at Kansas State University analyzed 211 livestock video auctions and determined that trucking distance has an effect on the price that buyers are willing to pay.
To further support cattle producers across the country the Beef Checkoff-funded Beef Quality Assurance (BQA) program has released the first in a series of Advanced Education Modules.
Purina Animal Nutrition introduces Purina® Plus, an innovative feeder calf program, which aims to help cattle producers supply high-value, low-risk feeder calves to the marketplace.
