Over the past five weeks the combined Prime and Choice carcasses harvested totaled 84.7%, a six percentage point increase over the September low of 78.7%.
Carcass weights have trended heavier for over 60 years with steer carcass weights increasing by an average of 4.0 pounds per year, up over 240 pounds from 660 pounds in the 1960s to over 900 pounds in recent years.
Negotiated cash cattle prices moved lower again under pressure from sinking futures markets. The red-hot hamburger market kept pushing most utility cows higher.
The margin spread between packer losses and feedyard profits expands as wholesale beef prices continue their retreat. Pork producer profits continue increasing.
Beef exports continue to face headwinds as beef production decreases and beef prices increase in the U.S. market. Beef imports are dominated by imports of lean processing beef to supplement supplies of nonfed beef.
Under pressure from negative margins, packers will continue to play their games but their activity last week led to the biggest harvest rate in seven weeks.
Kay Russo, DVM, Novonesis technical services manager for dairy and poultry, emphasized the situation is rapidly evolving and more clarity will come with time as researchers learn more.
As cattle are fed to heavier end points, the incidence of BCHF is increasing. The beef industry is stepping up to help producers and veterinarians make production and selection decisions to reduce the occurrence of BCHF.
The latest data on steer weights shows 23 pounds heavier than a year ago at 922-pounds, record-high for the first two weeks in March. That's a sharply higher trend line in a time when weights historically trend lighter.
Market cow prices have increased significantly as demand has grown for product in the nonfed beef market, and the supply is tightening faster than that of fed beef.
News of HPAI in dairies in the southern plains gave futures bears reason to react early last week, and the negative psychology spilled over into the cash trade as all regions traded lower.
A primary reason feedlot inventories have remained high is due to the continued placement and feeding of heifers. At some point, increased heifer retention will lead to more pronounced decreases in feedlot inventories.
Cash fed cattle prices reached new record highs in all feeding regions last week, but the trade was a bracket-buster for packers who were forced to pay up as wholesale beef prices declined.
Certified Angus Beef has captured detailed carcass measurements on several million Angus-type carcasses over the past 17 years to learn about brand-eligible, Angus-influenced carcasses across the industry.
Sine 2000, per capita domestic spending for beef has grown at about $11 annually, and Prime and Branded sales account for 60% of those new dollars since 2005. Marbling is the difference maker.
Even as consumers are sensitive to higher prices, beef demand remains strong. Increases in beef's overall quality and uniformity over the years has spurred that demand growth and marbling has been the difference maker.
Negotiated cattle prices moved higher again as supplies continue tightening. Packers are caught in significant margin squeeze with marketing leverage continuing to favor cattle feeders.
Cattle are NOT fungible – value differences across the slaughter mix is enormous. Precision pricing – via a grid – makes a huge difference and attempts to mandate arbitrary levels of live cash trade negates that reality.
Comparing cutout values across USDA quality grades and Certified Angus Beef® brand carcasses provides the quality pricing component of fed cattle values for grid and many formula sales.
The reliability of marbling is making a difference – and cattle feeders are taking advantage. With real dollars at stake, more cattle are committed to negotiated sales and betting on the grid is paying off.
The feedlot inventory as a percentage of the total inventory has increased over time, and the declining number of feeder cattle means there are not sufficient feeder cattle to maintain feedlot inventories this year.
Cash cattle posted solid gains this week as futures prices closed the week with four-month highs. Friday’s Cattle on Feed report met expectations with the exception of placements, which were higher than anticipated.
Cash cattle traded lower in all regions for the first time in more than a month, but futures prices rose Friday to the highest levels in nearly four months.
Extreme January weather conditions impacting a large portion of cattle feeding regions have been widely impactful to cattle feeders and the beef supply chain.
Production Animal Consultation (PAC) will host two beef industry summits in April, allowing people from the beef industry to gather and exchange ideas.
Fed cattle broke through $180 barrier this week, establishing the highest prices since the week ending November 3 and cattle feeders continue to gaining leverage.
Following last month's blizzard, warmer temperatures and recent rains have created muddy feedlot conditions that present challenges for cattle and cowboys. Nebraska extension offers these strategies to cope.
Bullish traders showed their hand at the CME pushing April LC to a three-month high and helping spur a solid rally in cash cattle markets. Inventory report confirms tight supplies will remain for the near future.
UNL Feedlot Extension has organized an online discussion for noon (CST) Monday, Feb. 5 to talk with cattle producers about the challenges they're facing in dealing with the muddy conditions.
Oklahoma State's Derrell Peel points out with the U.S. beef cow herd the smallest since 1961 and the all cattle inventory the lowest since 1951, it’s setting the cattle market up for higher highs.
The complexity and dynamics of the beef industry can create financial opportunities for cow-calf operations willing to take a business approach to their decision-making process.
When we let ourselves focus on outside influences we are succumbing to defeatism. The better approach is to focus on those things you can control: you versus you.
Improving prices for live cattle and wholesale beef lifted margins for both feeders and packers. Pork producers also found improved margins but remain in the red.
The January thaw across most of the cattle feeding regions helped spur the year's first weekly gains for market-ready cattle. The rally was noticed by traders in Chicago as futures markets posted 10-week highs.
The first system to make feeding recommendations via artificial intelligence (AI) and machine vision has been announced by Precision Livestock Technologies.