Fed Cattle
The fast pace of cow slaughter thus far implies the likelihood of significant beef cow herd liquidation in 2022. The next few months will likely have impacts on the cattle industry for several years.
The number of heifers on feed does not suggest heifer retention for herd expansion, and the current pace of cow slaughter suggests the beef cow herd could decline up to four percent in 2022.
Cattle sold steady to firm and cattle feeders should still have a few weeks to try to push the market higher before cattle inventories increase.
Cash cattle trade was active at steady prices while cattle futures saw sharp losses triggered by USDA’s bearish Cattle on Feed report, with chart breakdowns fueling technical selling.
All four bosspackers testified in Washington this week, and none of our elected congressbeings made anybody squirm.
Prior to testimony at the House Agriculture Subcommittee on Wednesday, Tyson Foods Inc. President and CEO Donnie King released a statement to give his perspective about cattle and beef market practices.
Sen. John Boozman (R-Ark.), ranking panel member reveals he had ‘spirited conversations’ and ‘unsuccessfully attempted to secure the expert opinion of the Office of the Chief Economist on S 4030.’
Cattle will continue to come in lighter than expected and lose grade due to high ration costs. This could help keep forcing the packer to harvest more cattle than expected to keep their orders filled.
Cash cattle prices saw a surprising but welcome rally ahead of Friday’s Cattle on Feed report, which looks bearish for next week’s futures markets. COF totaled 12.1 million head, 1.7% higher than last year.
Working group of ag economists assess Cattle Price Discovery and Transparency Act of 2022
Next week will be a good one for folks with good internet access and a few free hours who want to see some rhetorical fireworks about cattle price discovery.
Seven years after repeal of mandatory country-of-origin labeling, a proposal has been introduced for the Secretary of Agriculture to “determine a means of reinstating” COOL, despite evidence of “no measurable benefits.”
The tightest market-ready fed cattle supplies of the season in the North are helping to push prices higher for most feedyards.
The coming weeks should fuel interest in high-quality beef cuts for grilling. As the share of harvest-ready calf-feds grows in the fed cattle supply, we anticipate seasonally lower quality grade trends.
There’s irony in R-CALF’s recent Market Reform bill 180-degree about face. The ranch group “presumably figured out what we’ve known all along: the cure is worse than the disease,” writes columnist Nevil Spear.
Groups are calling on USDA’s Food Safety and Inspection Service to recall any antibioitic-positive beef that was destined for USDA-approved “raised without antibiotics” labeling programs.
Cattle feeders in the South sold cattle throughout the week at steady money while feeders in the North pushed their market a little higher by week’s end.
Regional processing plants are not likely to be an easy success, but we need them so badly. So much more badly than we need crabs-in-a-bucket laws telling big feeders their marketing methods are too efficient to be fair.
A substantial portion of beef advertised as “raised without antibiotics” may, in fact, contain antibiotics, according to research by George Washington University published in Science Magazine.
Feed is a major cost input for all segments of beef production. Feed efficiency is always a primary determinant of profitability, but when feed costs are high, it becomes even more important.
Continued demand for non-GMO feed for livestock will increase greenhouse gas emissions on farms, and raise consumer prices for meat, milk and eggs, according to a study by Iowa State University.
There’s all this energy focused on the “market” – but there’s little emphasis on the “business”, that’s where opportunity gets established.
Two new economic analyses of the U.S. cattle markets suggest Congress “must do more” to implement reforms, says R-CALF USA. University economists note neither study has passed peer-review.
Prices on the South Plains remain locked in a price rut as packers appear to have plenty of inventory. Corn Belt prices remain premium to other regions.
Regarding those cash mandates, now we have NCBA and Farm Bureau saying don’t do it. Don’t need it. And R-CALF apparently saying they won’t settle for such weak tea.
Raising cattle to qualify for the Certified Angus Beef (CAB) brand requires a black hided animal and meeting 10 carcass specifications.
The North American Meat Institute said the latest version of the Grassley-Fischer government mandate bill is now more onerous and more irrelevant as market driven prices for cattle have risen to seven-year highs.
Bovine respiratory disease (BRD) is still a serious threat to the economics of beef production accounting for $800 to $900 million in losses from death loss, treatment cost, and reduced production.
Cattle feeders have been more willing to sell finished cattle in recent weeks since corn prices have elevated the ration cost and feed conversion efficiency decreases at the end of the feeding period.
Senators renewed their call for mandatory minimum cash trades for the purchase of fed cattle as they unveiled a revised Cattle Price Discovery and Transparency Act, and suggested Senate will hold hearings soon.