Fed Cattle
Packers increase their slaughter ahead of the first holiday weekend of the summer and the spread between North and South widens back to $6 per cwt.
Negotiated cash cattle prices declined for the fourth consecutive week in the South but held steady in Northern trades.
A broad view of recent carcass cutout values shows plenty of strength in wholesale boxed beef prices. To contrast current values to a year ago, CAB and commodity Choice cutouts are 14% higher.
Workshop training events for managers and employees of feedyards and related industries are scheduled for June in Kearney, Neb., and Garden City, Kan.
With the grilling season set to kick off, lots of attention is focused on beef demand as the tightening of beef supplies will increase the pressure for higher wholesale and retail beef prices.
Packers are working to remain profitable, using basis for extended delivery, freighting cheaper inventory to areas of regional cash strength and running harvest at a snail’s pace.
Negotiated cash cattle prices declined for the third consecutive week in a moderate to active trade. Wholesale beef prices also declined yet remain above seasonal averages.
Currently, 94 participants from 22 states are feeding more than 1,400 head of Hereford and Hereford-influenced feeder cattle at HRC Feed Yards, Scott City, Kansas.
Do beef producers share in the profits gained through international trade? Let’s examine the data through the eyes of one of the industry’s largest players.
The third annual National Junior Hereford Association (NJHA) Fed Steer Shootout Field Day was held last month at HRC Feedyard, Scott City, Kansas.
Wholesale beef prices hit a recent low the end of March at $280.51 per cwt., but the steady march higher since then put Friday’s close as the highest Choice cutout value for that week on data available back to 2004.
Global macroeconomic concerns continue to keep beef markets nervous. Slowdowns in some markets have had some impact and, yet global beef markets continue to be resilient and demonstrate continued growth.
A 15,000-head sustainable beef feeding operation is planned for development by a 6th generation family farming and feeding operation in the Red River Valley near Bathgate, North Dakota.
A softer market for the first time in a month, but its a breather we have all been expecting. Keep an eye on the basis between cash and futures as packers will use it to gain leverage.
Negotiated cattle prices fell short of steady on the week, though fundamentals point to further gains in the short-term. Cattle on feed found 4.4% fewer cattle at the bunk, but placements were mildly surprising.
OFF supporters, in their effort to undermine the Beef Checkoff, are touting a meaningless measure – and in turn boondoggle their own credibility.
Packers continue to haul cheaper inventory to regions grinding higher and peel back harvest to stall the market. This is all friendly, one does not cut kills with peak demand on the forefront.
Passing on bids at record levels was common early last week and negotiated sales printed new record highs for the third week in a row. Analysts and cowboys are eyeing additional gains next week.
Plowing headlong into spring we’re now observing the impacts of not only smaller weekly slaughter but lighter carcass weights in the north.
Government intervention, or the free market? An esteemed ag economist implored the beef industry long ago not to “block changes that are being prompted by basic rules of economics.”
Cattle markets surging $10 higher over the past two weeks have pushed the 5-area average price to record levels and the rally may continue this week.
With cattle feeders in the driver’s seat, packers will seek leverage to price cattle for future delivery. They aren’t looking to do feeders a favor with the strategy.
The American Hereford Association announces an expansion of their popular Hereford Feedout Program to accommodate more producers.
Packers chased finished cattle into the evening on Wednesday last week and the result was another rally in cash prices to new record highs, eclipsing the mark set in November 2014.
In a steady market, fed prices would typically peak seasonally about now and move lower through the third quarter before increasing to year end, but there is good reason to expect the uptrend will continue in 2023.
Last week’s huge cash rally featured all packers vying for position to tie up cattle in all regions. Yet, packers aren’t gaining inventory.
New research helps policymakers understand the role multi-plant coordination plays in the fed cattle market as they consider policies aimed at increasing negotiated trade with the hope of improving price discovery.
Cash cattle prices turned sharply higher last week as supplies continue to tighten. Moderate to active trade pushed cash prices to new highs for the year with some eyeing another surge next week.
With current fed cattle carcass weights 16 lb. lighter than a year ago marbling achievement, on average, is likely to underperform in contrast to the past two years.
A healthy dose of cynicism is said to be a good thing. But that can easily morph into defeatism. And when that occurs, it’s paralyzing.