Fed Cattle
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.
In a cattle working facility, the function of the crowding area, often called a “tub” is to funnel cattle into an alleyway on the way to the squeeze chute or loadout.
Packers desperate to keep their grasp on the cattle market looked to their inventory to keep the pressure on cash prices. Cattle feeders reluctantly traded lower.
With beef production falling, a relatively strong dollar and some global macroeconomic weakness, a decrease in exports has been expected.
Cash cattle prices retreated from the previous week’s historic highs and a seasonal decline was to be expected. Analysts, however, believe another rally is brewing later in the season.
Solid prices gains are not new to cattle markets. Solid gains have been ongoing for several years and the fed market has roughly doubled over the past 35 months, a clear sign the market is not “broken.”
Set to open in 2025, the Olathe, Kan., plant will further Walmart’s commitment to creating an end-to-end Angus beef supply chain.
One of the goals of feeding cattle a proper diet that promotes good gut health is to keep the lining of the intestinal tract from getting damaged.
The arrival of El Niño likely means that additional drought impacts will be minimal and herd expansion may begin. The July Cattle inventory report may be the first sign showing an increase of beef replacement heifers.
In this time of great leverage cattle feeders are finally discovering what it means to be a market maker and not a market taker.
A significant rally in fed cattle over the past three weeks confirms the front-end supply of cattle remains extremely current and cattle feeders have been willing sellers driven by good profits and a strong basis.
As temperatures ratchet up, the disorder is more frequently seen in fed cattle ready for slaughter. Veterinarians offer their take on what contributes to the problem and seven recommendations to help prevent it.
Markets may be higher, but there’s inherently more risk with each calf crop over time. That reality means ranchers must implement sound business strategies to ensure successful decision-making going forward.
Temperature, humidity, wind speed and solar radiation all affect cattle, but a Kansas State veterinarian said producers should also watch nighttime temperatures that are just as important in preventing heat stress.
Tightening supplies of beef and cattle are dominating market fundamentals and will continue to do so in the near-term.
Beef packers appeared unprepared for the rapidly tightening supply of market-ready cattle and the result was a rocket to new cash highs.
Packers were aggressive bidders in all regions as cash fed cattle markets made historic late-season moves higher in the holiday-shortened trading week.
As supplies of market-ready cattle have declined, so has beef packer capacity utilization.
Dr. Frank Mitloehner, often referred to as the “greenhouse gas guru,” spoke to the Blueprint For The Future Cattlemen’s Conference at Oklahoma State Universtiy.
Increasingly tight cattle supplies suggest that margins at all levels above the cow-calf sector will be squeezed in the coming months. The severity of the squeeze and the timing will vary across beef industry segments.
Packers unexpectedly found themselves chasing a limited supply of higher-grading cattle last week and the result was sharply higher prices in the North.