Fed Cattle
Market-ready cattle prices have rolled back $10 per cwt. since the end of October and average carcass weights have increased to all-time highs, a sign feedlots are not as current as previously expected.
Rib and tenderloins are pricing near their annual highs, but a look at annual price trends across the beef carcass shows increasing contributions to CAB premiums from both ends of the carcass.
Light cattle sales volumes were recorded in all regions during Thanksgiving week with cash prices generally $1 lower than the previous week, marking the fourth consecutive week with lower cash prices.
Cattle feeding margins declined nearly $100 per head last week with lower cash bids and rising costs. Pork producer margins remain mired in red ink.
A combination of factors has contributed to increasing feedlot placements the past two months, including drought and increasing imports. But biggest factor is likely that producers are taking advantage of strong prices.
Friday’s COF placement numbers provided a friendly lean to a market that has suffered consecutive weeks of falling futures and lower cash bids. Sellers hope to leverage the short week ahead with higher asking prices.
Prices for market-ready cattle have tumbled $7 to $8 per cwt. since the beginning of the month even as supplies remain relatively tight. Volatility continues in the futures market.
Beef exports continue to face significant headwinds in 2023, and September’s export volume was down 15% and the lowest of the year so far.
Cash cattle prices decline 3% for the week as December Live Cattle futures hit a five-month low and nearby feeder futures post seven-month low.
Using cutting-edge artificial intelligence and sensor technologies, Oklahoma State University researchers have embarked on a groundbreaking project aimed at studying stress in cattle.
Beef demand has been remarkably robust through many shocks in recent years and continues to surprise and impress despite the nervousness of the industry to the challenges facing consumers.
Beef’s critics see an industry that is corrupt and/or broken with NCBA and packers padding their pockets. The facts tell a different story. Beef is winning the marketplace…and it’s not even close.
Volatility contributed to a strong basis early last week and cash traders benefitted by waiting until late week to sell cattle.
Cattle prices were weaker on the week with volatility in the futures markets and the season’s first cold spell on the way. Wholesale beef prices traded higher seasonally.
Shifting market dynamics are most succinctly summarized through two factors, fewer cattle and higher prices, that will further entrench themselves in near term trends.
Despite ever smaller feeder cattle supplies, feedlot inventories have temporarily halted the slow decline of the last year with the September surge in placements.
Packers were forced to add to their inventory and pushed prices $2 higher last week. The surprises in the Cattle on Feed report may offer a reason to push prices lower, yet feedyards maintain the upper hand.
Prices for day-old beef-X-dairy (BXD) calves are often surprisingly high. But what used to be a highly discounted after-thought (straight dairy calves) is rapidly transforming into a meaningful source of production.
Cattle feeders saw $1 to $2 gains in all regions during the week, but a struggling futures market and an unfriendly placement number in Friday’s Cattle on Feed report may drag on cash prices in the short-term.
Prices across the entire beef complex have reached record levels. Demand remains the key variable, and now may be the time to measure demand through the value of the various cuts of the carcass.
Price-fixing allegations were again levied against America’s largest beef packing companies, this time by a group of small distributors.
Fed cattle trade posted gains last week, but the rally was not incentivized by wholesale beef prices, but rather pushed by limited supplies of ready cattle.
Following a couple of weeks of steady to lower money, fed cattle prices posted advances in all regions last week.
Procurement decisions by feedyards are heavily influenced by vaccination status and current health condition. An “Industry Insights” report from CattleFax and Angus Media provides useful insight on current trends.
As the board moved on its second leg down last week, packers motivated sellers with additional kickers on their offers.
Outside factors pressured cattle markets through most of the past week before futures and wholesale beef prices rebounded on Friday. Market fundamentals remain positive for cattle going forward.
More days on feed means more opportunity for something going wrong – ultimately ending in increased death loss. Preventive illness management before arrival is more important than ever.
Packers applied the brakes and cattle slaughter declined another 13,000 head last week and capacity utilization dipped 9%. Pork producer margins print $7 in the red.
Magnum Feedyard, Wiggins, Colo., was recognized as this year’s Feedyard Commitment to Excellence award winner at the Certified Angus Beef Conference in Las Vegas.
Cattle futures posted weekly losses including a technically bearish weekly low close in December live cattle. Cash markets were weaker, but strong cash fundamental remain in place.