Fed Cattle
Lower average cattle prices last week cut average feedyard margins by $43 per head last week, while pork producers saw a $5 per head increase in average margins.
Cattle feeding margins improved with a $2 per cwt. increase in cash cattle prices while farrow-to-finish hog margins declined modestly on slightly lower lean carcass prices.
Both cattle and hog finishing estimated margins were positive last week despite rising feed costs across both enterprises. Cattle slaughter totals increased while hog processing numbers were near steady.
Average cattle feeding margins improved the final week of March, while average farrow-to-finish hog margins declined modestly.
Average feed costs for finishing cattle and hogs are 25% to 28% higher than the same week last year, according to Sterling Marketing’s weekly calculations.
The average cost of feeding a steer to finish weight was 25% higher for cattle marketed last week and is projected to be 31% higher for cattle placed on feed last week at roughly $600 per head.
The pendulum continues to swing in cattlemen’s favor as cash prices rally $3 per cwt. Pork producers see improved profit margins with a $7 per cwt. rally.
Market leverage has shifted dramatically toward ranchers and cattle feeders over the past two months. The combination of rising cattle prices and declining wholesale beef prices has eroded historic packer margins.
Autumn’s fed cattle price rally has pushed average cattle feeding margins through the $200 per head barrier for the first time since well before the pandemic.
The highest cash fed cattle prices in seven years provided good profits for cattle sold last week but rising costs are pushing breakevens higher.
Profit margins for both cattle and hog finishing operations saw modest gains last week but also carry significantly higher feed costs than a year ago.
Beef packers saw per head losses nearly double last week as wholesale beef prices tumbled $7 per cwt. lower. Pork processors are also found negative margins and producer margins remain short of breakeven.
Packer margins remain in the red even as wholesale beef prices rallied $9 per cwt. and cash cattle prices were near steady.
Cattle prices moved higher last week but cattle feeding margins remain modest. The supply-demand fundamentals are trending in favor of cattle feeders.
The pendulum continues swinging toward cattle feeders as cash prices jumped $3 last week and left packers with their largest negative margins in nearly six years.
Rising wholesale beef prices and declining packing plant utilization are two indicators to watch as the 2023 cattle markets unfold.
Cattle and hog harvest rates were lower last week with higher cash prices paid to farmers and feeders. Margins for both beef and pork packers are trending lower.
Profit margins for cattle feeders increased as cash prices moved higher last week. Pork producers continue operating with negative margins.
Cattle feeding margins declined last week after modest declines in cash cattle prices. Pork producer margins remain underwater.
Cattle feeders sold more cattle last week than any week this year and at the highest price in history. Pork producers saw modest profits.
Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.
Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.
Cattle feeders experience largest average profits in seven years as packer margins dip into the red.
Profit margins for cattle feeders and packers continue pacing in opposite directions as shrinking supplies of market-ready cattle drive negotiated cash prices higher.
The use of shades in feedlots has made a big difference in the effects of heat on fat cattle, but a few other strategies can help keep cattle cool, enabling cattle to keep gaining, even in the dog days of summer.
Prices are higher as tighter numbers and beef supplies push markets toward record levels. The biggest question now is the extent herd rebuilding begins with increased heifer retention and reductions in cow slaughter.
Feeder cattle got a boost from declining corn prices and wholesale beef prices moved lower ahead of next week’s holiday-shortened schedule.
Record packer margins were the tipping point to attract new capital to the business. There is now angst packer margins will be too low and these new companies won’t survive. But should we encourage government meddling?
Cash fed steer prices reached record highs two weeks ago, and the trajectory – fueled by strong demand and restricted head counts – was predestined to hit the seasonal ceiling.
Negotiated cattle traded lower for the second consecutive week and the Cattle on Feed report surprised with a placement total significantly higher than expected.