After a mostly sluggish April, market-ready fed cattle saw a solid rally in the North and steady money in the South. Futures markets began to look past the psychologically bearish H5N1 virus news.
The spring cattle market rally was beginning to bloom this week, with yearling feeder cattle trading firm to $5 higher and instances of $6 to $8 higher.
Beef packers put away the red ink last week as they turned modest profits on every animal processed. Feedyard margins, however, slipped a little further away from positive.
For 2015, it looks like beef producers will see a slight drop off in the market, but profitability should remain high thanks to increasing global demand and lower input costs.
Traders and analysts were surprised by USDA’s 2015 Cattle Inventory Report, which suggests increases are coming to the beef supply chain sooner than expected.