Fed Cattle
Cattle and hog feeders find dramatically lower feed costs compared to last year with higher live anumal sales prices. Beef packers continue to struggle with negative margins.
While the heifer percentage in feedlots remains above the average of the past ten years, the decline from January to April is an encouraging sign that heifer feeding is perhaps slowing.
Cash cattle markets edged lower and while wholesale beef and futures markets were mixed. Cattle on Feed totals were up for the seventh consecutive month and placements lower than expected.
Innovative Livestock Services, Inc., announces leadership change for the company that represents eleven feedyards
Over the past five weeks the combined Prime and Choice carcasses harvested totaled 84.7%, a six percentage point increase over the September low of 78.7%.
Carcass weights have trended heavier for over 60 years with steer carcass weights increasing by an average of 4.0 pounds per year, up over 240 pounds from 660 pounds in the 1960s to over 900 pounds in recent years.
Declining cattle futures provided leverage for packers to collect inventory with softer bids.
Negotiated cash cattle prices moved lower again under pressure from sinking futures markets. The red-hot hamburger market kept pushing most utility cows higher.
The margin spread between packer losses and feedyard profits expands as wholesale beef prices continue their retreat. Pork producer profits continue increasing.
Beef exports continue to face headwinds as beef production decreases and beef prices increase in the U.S. market. Beef imports are dominated by imports of lean processing beef to supplement supplies of nonfed beef.
Under pressure from negative margins, packers will continue to play their games but their activity last week led to the biggest harvest rate in seven weeks.
Kay Russo, DVM, Novonesis technical services manager for dairy and poultry, emphasized the situation is rapidly evolving and more clarity will come with time as researchers learn more.
Finished cattle, feeders, calves and the futures markets were all in retreat as the HPAI event becomes the latest beef industry black swan.
As cattle are fed to heavier end points, the incidence of BCHF is increasing. The beef industry is stepping up to help producers and veterinarians make production and selection decisions to reduce the occurrence of BCHF.
The latest data on steer weights shows 23 pounds heavier than a year ago at 922-pounds, record-high for the first two weeks in March. That’s a sharply higher trend line in a time when weights historically trend lighter.
Packers were quick to act on last week’s falling futures, but cattle feeders held firm in a week that could have moved much lower.
Market cow prices have increased significantly as demand has grown for product in the nonfed beef market, and the supply is tightening faster than that of fed beef.
News of HPAI in dairies in the southern plains gave futures bears reason to react early last week, and the negative psychology spilled over into the cash trade as all regions traded lower.
Does more negotiated cash cattle trading benefit feeders or packers? An evaluation of packer gross margin provides some perspective.
Does an increasing negotiated cash cattle trade lead to higher overall prices? Here’s what the data reveal about this most tenuous topic.
A primary reason feedlot inventories have remained high is due to the continued placement and feeding of heifers. At some point, increased heifer retention will lead to more pronounced decreases in feedlot inventories.
Cash fed cattle prices reached new record highs in all feeding regions last week, but the trade was a bracket-buster for packers who were forced to pay up as wholesale beef prices declined.
Each of the pathogens exhibits slightly different clinical signs and often at different times.
Certified Angus Beef has captured detailed carcass measurements on several million Angus-type carcasses over the past 17 years to learn about brand-eligible, Angus-influenced carcasses across the industry.
Sine 2000, per capita domestic spending for beef has grown at about $11 annually, and Prime and Branded sales account for 60% of those new dollars since 2005. Marbling is the difference maker.
All classes of cattle sold at higher prices for the week and most are at or near record highs. Supplies of all classes remain extremely tight.
Even as consumers are sensitive to higher prices, beef demand remains strong. Increases in beef’s overall quality and uniformity over the years has spurred that demand growth and marbling has been the difference maker.
Negotiated cattle prices moved higher again as supplies continue tightening. Packers are caught in significant margin squeeze with marketing leverage continuing to favor cattle feeders.
Cattle are NOT fungible – value differences across the slaughter mix is enormous. Precision pricing – via a grid – makes a huge difference and attempts to mandate arbitrary levels of live cash trade negates that reality.
All classes of cattle and futures prices moved higher for the week ending March 1. April live cattle closed at the highest level since early November.