Fed Cattle
Cattle feeders continued to leverage tight supplies of market-ready cattle to push markets higher until packers were forced to be more aggressive.
Results from the 2022 National Beef Quality Audit provide insight into the quality and value of cattle on the rail, determining ways the industry might look to improve in the coming years.
There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.
Whether futures markets are friend or foe often depends on our understanding of those markets and whether we can ignore the drama and use facts to make decisions.
Generally, a good week for agriculture with cattle steady to stronger despite a significant rally in the corn market. Packers try to hide their hand, but without inventory they must pay up to keep plants running.
Further discussion about cattle markets leads our columnist to conclude: producers are “prone to have high confidence in unfounded intuitions” and we often derive conclusions based on incomplete information.
Summertime in July means there are often two pasture requirements: shade and reliable water. There is plenty of debate whether shade is required or not in arid parts of the country as well as beyond the pasture setting.
Beef imports will continue to be supported by higher domestic beef prices and the reduction in U.S. processing beef supplies due to reduced cow slaughter.
Packers searching for cattle last week hinted at their looming predicament – showlists too small to utilize current industry capacity.
If there was an industry-wide BOLO system (be on the lookout), packers would have used it this week as they seek to build an inventory of market-ready cattle to fill their post-July 4th needs.
The PAC Summit for Industry Leaders will be held July 12, 2023, at the Holiday Inn in Kearney, Nebraska. The event features an exciting line-up of speakers and topics.
Attractive wholesale beef prices have encouraged packers to give up some inventory with aggressive slaughter numbers. Packers may need to get creative in the weeks ahead as numbers decline.
Cattle feeding margins jumped nearly $17 per head higher last week to average $196.50.
The increase in margins was the third consecutive weekly gain, leaving average profits above $230 per head.
After two weeks of losses, cattle feeding margins are back in the black.
Cattle feeders began the New Year with black ink on their closeouts, but profits were minimal
Whether you’re cattle feeder or packer, ledger sheets are full of red ink.
Cattle feeding margins declined $45 per head last week, leaving average per head losses at more than $77.
Cattle feeding margins improved nearly $25 per head last week, but average per head losses remain more than $32.
The pain eased somewhat for cattle feeders last week, but losses remain more than $170 per head.
It was another ugly week for cattle feeders.
Beef packers put away the red ink last week as they turned modest profits on every animal processed. Feedyard margins, however, slipped a little further away from positive.
Cash cattle prices dipped nearly 50 cents per cwt.
Cattle feeding margins declined nearly $53 per head last week, leaving average losses at $56 per head.
The financial pain of feeding cattle eased again last week, but losses remain more than $125 per head.
The pain eased somewhat for cattle feeders last week, but losses remain more than $97 per head.
Cattle feeding margins took another turn south last week after a nearly $4 per cwt. decline in fed cattle prices.
Cattle feeding margins took another tumble last week after a $1 per cwt. decline in fed cattle prices.
Cattle feeders added a little powder and lipstick to closeouts this week, but the ugly continues to shine through.
Last week saw dramatic improvement in cattle feeding margins, yet triple-digit losses remain.