Fed Cattle
While the market average trading range has narrowed from the recent historically wide range, the total market average in the six-state region has priced in a fairly tight range in the low to middle $180’s since June.
Cattle futures rallied to all-time highs on Friday after Thursday’s sell off, supporting negotiated cash prices that reported mostly steady for the week.
Agriculture is changing rapidly; that inherently creates tension. However, producers who operate believing “success is within my control” are the ones most likely to succeed amidst the turbulence.
Congestive heart failure is estimated to cause 4% of feedlot mortality causing significant economic losses to feedlots as the majority of these deaths occur late in the finishing period.
The beef demand success story of the past is also the industry’s roadmap for the future, said speakers at this year’s Feeding Quality Forum.
As the futures continued to grab new ground throughout the week, cattle feeders continued to find confidence in higher asking prices.
KSU economists said data reviewed clearly demonstrates that sending clear value signals to producers through premiums for high quality carcasses and discounts for less desired quality has transformed the beef industry.
Market leverage remains solidly with cattle feeders, but packers continue working their options to hold prices in check.
America’s beef producers are optimistic about the future, and the state of today’s industry is strong. Those are two highlights from the 2023 Drovers State of the Industry survey and reported in this special section.
Last week I learned I’m a 12-percenter, and if you’re a Drovers reader it is likely you are a 12-percenter, too. That’s not good, at least according to those who would regulate our dietary choices.
Packers narrowed the North-South spread last week and through a series of factors including the weather, have seen the marketing leverage swing in their favor.
Weaker cattle and beef prices were the rule in trading ahead of the long weekend, but this marks the 14th consecutive week negotiated cash prices have traded above $180 per cwt.
Are southern cattle feeders too passive when marketing cattle? Here’s what the data suggest.
Increased adoption of beef on dairy crossbreeding will primarily benefit dairy producers, but other sectors of the beef supply chain stand to benefit as well.
The spread between cattle feeding margins and packer margins narrowed modestly last week. Pork producers remain profitable.
A federal judge in Minnesota dismissed the claims filed by a putative class of cattle ranchers in a long-running case that alleged an industry-wide scheme to fix prices.
When $1 lower bids failed, packers reduced bids even more, encouraging some feeders to sacrifice ground to secure a spot for some ready cattle.
Fed cattle trade was called moderate to active in all regions with lower prices. Friday’s cattle on feed report saw significant reductions in feedyard placements.
Cattle inventories simply are not large enough for the packer to build any market leverage. Reluctantly, packers bought cattle at steady to higher money and cowboys will seek more this week.
Cash cattle trade was sluggish as feeders and packers dig in their heels. Feeder cattle and calf prices continue marching higher even as drought sends some early-weaned calves to market.
Consumption data are often used to mislead and undermine the beef industry’s accomplishments and disparage the Checkoff. But such data in the absence of price data provides zero information about beef’s competitiveness.
Cattle feeders continue to gain market leverage as packers see pressure from declining wholesale beef prices. Pork producer margins remain solidly in the black.
When buying a 4-H steer or other beef animal from a local producer, how much beef can you expect after processing? Check out these tips to calculate how much meat one beef animal will return.
Cattle feeders were rewarded in last week’s standoff with higher prices in all regions. Packers will continue to slow harvest rates in an effort to hold the market in check.
Packers are picking around the edges and dragging their feet when looking at higher asking prices, but the bull market remains in place with the cattle feeder gaining leverage each week.
Cattle feeders focused on helping cattle where they could through last week’s extreme heat and humidity. Packers looked to work the market lower, but relatively few cattle changed hands as cattle feeders held firm.
Cattle feeders held firm to higher asking prices and packers continued to wave lower bids with only a few cattle trading hands. Leverage remains in the feeder’s hand as packers must begin filling Labor Day orders soon.
With estimates of 82% capacity utilization of fed beef plants next year and 65% for cow slaughter plants, Nalivka says, “Rest assured - there will be decisions made.”
In the second quarter of 2023, national average carcass quality grades held up especially well considering that carcass weights were 15 to 20 lb. lighter than a year ago in the first quarter.
The sharp increase in feeder cattle prices this year represents a growing market incentive for the beef cattle industry to transition from liquidation to expansion, but it does not appear the industry is responding yet.