Fed Cattle
The many moving pieces in grid marketing make it a bit of a chess game, but learning to play opens more opportunity for big wins. Ranchers can target cow herd genetics toward factors driving value in the supply chain.
Price discovery in today’s fed cattle market “appears to be functioning effectively in even the thinnest regional fed cattle markets,” according to an analysis by University of Arkansas agricultural economists.
AgriTalk host Chip Flory discusses the status of the Cattle Price Discovery and Transparency Act with Senators Deb Fischer and Chuck Grassley.
While Dale Durcholz does think there’s potential for a grain production number shift, he says the winter farmers and feed yards have faced is more likely to be the cause of a grain stocks shift lower.
Late fall holiday demand heats up the cattle market, and that’s when high-quality carcasses get extra bragging rights. Demand alone doesn’t spur prices higher, there must be a degree of supply constraint.
America’s dairy industry has been robust the last several decades. Now, larger average dairies are producing more beef-dairy crossbred calves that are much higher quality for producing beef.
Cattle prices moved moderately higher in both the North and the South last week as the declining supply of market-ready cattle gradually shifting leverage toward feedyards.
The combination of tightening supplies and packers seeking higher-grading inventory helped push cash prices a little higher last week.
Once operational in late 2024, American Foods Group’s new beef facility in Warren County, Missouri, will process 2,400 head of cattle per day.
A lot has changed since the last drought-induced beef cow liquidation a decade ago. Recognizing those changes is important going into and coming out of the cycle lows.
While all packers were in the market for cattle last week, none were aggressive enough to push the cash market any higher than steady.
Cash fed cattle traded flat with most activity on Thursday ahead of Friday’s CME futures rally. Expectations of tighter cattle supplies this fall supports bullish ideas for prices.
Even though prices have been exceptional for calves and feeder cattle, feedlot breakeven projections are rapidly moving higher, discouraging ranchers to consider retaining ownership.
Buying for a holiday-shortened week, packers were not aggressive and prices suffered. This week should produce more robust trading.
Cattle in all categories traded mostly lower ahead of the Labor Day weekend. Packers head into next week with smaller inventories and cattle owners hope that encourages more aggressive bidding.
Closer evaluation of factors driving today’s cattle markets do not suggest a ‘broken market,’ but rather strengthening prices which are the result of increasing consumer beef demand - both domestic and international.
Marbling has more influence on tenderness, juiciness and flavor of cooked beef than the other types of fat. As a result, marbling and Beef Quality Grades are typically the biggest driver of beef carcass value.
Sustainable Beef LLC received a giant boost in its efforts to bring a new, 1,500 head per day beef processing facility online with a commitment from Walmart.
Investment in better genetics, management, research, and promotion have all proven to make a difference towards bolstering demand. Consumers have more awareness of, and access to, high-quality beef products than ever.
Cash cattle trade was called moderate in all regions but estimated cattle slaughter will be higher this week. Auction prices for both calves and feeder cattle were stronger.
For many industry stakeholders, the go-to solution seems to be more localized, regional supply chains. To these folks, the cohort of soon-to-be-built processing plants looks like a golden next era of the meat business.
Knowing the history and genetic potential of your cattle is critical when deciding if retaining ownership and selling on a grid is best for your operation.
Aided and abetted by drought, feedlots put together another month of large placements in July despite growing indications that feeder supplies are declining.
Efforts to regulate profits away from packers is a commodity mindset, columnist Nevil Speer writes. A better investment of time and money is toward consumers and growing beef demand.
Active trade pushed cash fed cattle prices higher again as the market has now advanced $7 over the last three weeks. Drought-induced feedyard placements created a modest surprise for analysts.
Construction will begin this fall on a $200 million upgrade to the existing beef complex and add employee facilities, including locker rooms, a cafeteria and office space.
During a ceremony in downtown Amarillo, principals for Producer Owned Beef announced their plans for a 3,000-head per day beef packing facility that will break ground next year.
Beef packers were forced to pay up to attract inventory last week, a bullish signal that the longer-term trend is higher for cash cattle.
Despite chatter about a global economic slowdown, U.S. beef exports remain on a torrid pace in 2022. Pork exports fell short of last year’s record pace.
The farmer’s share of the retail beef dollar is often misinterpreted and is not a good measure of industry viability. Much of the discussion about farmer’s share works to commoditize the marketing system.