Latest News From Fed Cattle

Packers searching for cattle last week hinted at their looming predicament – showlists too small to utilize current industry capacity.

If there was an industry-wide BOLO system (be on the lookout), packers would have used it this week as they seek to build an inventory of market-ready cattle to fill their post-July 4th needs.

The use of shades in feedlots has made a big difference in the effects of heat on fat cattle, but a few other strategies can help keep cattle cool, enabling cattle to keep gaining, even in the dog days of summer.

Prices are higher as tighter numbers and beef supplies push markets toward record levels. The biggest question now is the extent herd rebuilding begins with increased heifer retention and reductions in cow slaughter.

Attractive wholesale beef prices have encouraged packers to give up some inventory with aggressive slaughter numbers. Packers may need to get creative in the weeks ahead as numbers decline.

Feeder cattle got a boost from declining corn prices and wholesale beef prices moved lower ahead of next week's holiday-shortened schedule.

Record packer margins were the tipping point to attract new capital to the business. There is now angst packer margins will be too low and these new companies won’t survive. But should we encourage government meddling?

Cash fed steer prices reached record highs two weeks ago, and the trajectory – fueled by strong demand and restricted head counts – was predestined to hit the seasonal ceiling.

Negotiated cattle traded lower for the second consecutive week and the Cattle on Feed report surprised with a placement total significantly higher than expected.

In a cattle working facility, the function of the crowding area, often called a “tub” is to funnel cattle into an alleyway on the way to the squeeze chute or loadout.

Packers desperate to keep their grasp on the cattle market looked to their inventory to keep the pressure on cash prices. Cattle feeders reluctantly traded lower.

With beef production falling, a relatively strong dollar and some global macroeconomic weakness, a decrease in exports has been expected. 

Cash cattle prices retreated from the previous week's historic highs and a seasonal decline was to be expected. Analysts, however, believe another rally is brewing later in the season.

Solid prices gains are not new to cattle markets. Solid gains have been ongoing for several years and the fed market has roughly doubled over the past 35 months, a clear sign the market is not "broken."

Cattle feeders sold more cattle last week than any week this year and at the highest price in history. Pork producers saw modest profits.

Set to open in 2025, the Olathe, Kan., plant will further Walmart’s commitment to creating an end-to-end Angus beef supply chain.

One of the goals of feeding cattle a proper diet that promotes good gut health is to keep the lining of the intestinal tract from getting damaged.

The arrival of El Niño likely means that additional drought impacts will be minimal and herd expansion may begin. The July Cattle inventory report may be the first sign showing an increase of beef replacement heifers.

In this time of great leverage cattle feeders are finally discovering what it means to be a market maker and not a market taker.

A significant rally in fed cattle over the past three weeks confirms the front-end supply of cattle remains extremely current and cattle feeders have been willing sellers driven by good profits and a strong basis.

Profit margins for cattle feeders and packers continue pacing in opposite directions as shrinking supplies of market-ready cattle drive negotiated cash prices higher.

Markets may be higher, but there’s inherently more risk with each calf crop over time. That reality means ranchers must implement sound business strategies to ensure successful decision-making going forward.

Temperature, humidity, wind speed and solar radiation all affect cattle, but a Kansas State veterinarian said producers should also watch nighttime temperatures that are just as important in preventing heat stress.

Tightening supplies of beef and cattle are dominating market fundamentals and will continue to do so in the near-term.

Beef packers appeared unprepared for the rapidly tightening supply of market-ready cattle and the result was a rocket to new cash highs.

Packers were aggressive bidders in all regions as cash fed cattle markets made historic late-season moves higher in the holiday-shortened trading week.

As supplies of market-ready cattle have declined, so has beef packer capacity utilization.

Dr. Frank Mitloehner, often referred to as the "greenhouse gas guru," spoke to the Blueprint For The Future Cattlemen's Conference at Oklahoma State Universtiy.

Cattle feeders experience largest average profits in seven years as packer margins dip into the red.

As temperatures ratchet up, the disorder is more frequently seen in fed cattle ready for slaughter. Veterinarians offer their take on what contributes to the problem and seven recommendations to help prevent it.

Increasingly tight cattle supplies suggest that margins at all levels above the cow-calf sector will be squeezed in the coming months.  The severity of the squeeze and the timing will vary across beef industry segments.

Packers unexpectedly found themselves chasing a limited supply of higher-grading cattle last week and the result was sharply higher prices in the North.

The price spread between Northern cash cattle sales and Southern sales more than doubles as packers struggle to find inventory to maintain acceptable capacity utilization.

The PAC Summit for Industry Leaders will be held July 12, 2023, at the Holiday Inn in Kearney, Nebraska. The event features an exciting line-up of speakers and topics.

Moving forward, lower quality grades in May and lighter carcass weights combined with shorter fed cattle supplies may be expected, driving premiums into the high-quality cattle and beef markets. 

The Food and Drug Administration is changing guidance for using implants in beef cattle after June 2023.

"It is time for members of Congress to listen to those they truly represent," says R-CALF president Brett Kinzey, "the people whose passion and time is centered on their fields and pastures, not inside the Beltway."

For the second time in a decade, drought has pushed cattle numbers in the U.S. lower than planned and lower than needed to meet the demands of the market. 

One more column on the OFF Act regarding the coalition of groups that have some "dubious partners" with "questionable motives," Speer says.

The Protein PACT Academic Advisory Council is formed to advise on research priorities and the latest evidence related to meat production and consumption.

The Protein PACT Academic Advisory Council is formed to advise on research priorities and the latest evidence related to meat production and consumption.

The current front-end supply and winter delayed calf-feds have the northern packers stretched for inventory. Will that aid feeders' ability to push prices higher in the coming weeks?

Cash cattle traded steady to higher with futures prices trading higher for the week. Wholesale beef prices finished the week near steady.

Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.

Packers increase their slaughter ahead of the first holiday weekend of the summer and the spread between North and South widens back to $6 per cwt.

After Tyson Foods reports anemic first quarter sales and downgrades its forecast, The Wall Street Journal editors wrote, “This doesn’t look like an antitrust conspiracy or market oligopoly.”

Negotiated cash cattle prices declined for the fourth consecutive week in the South but held steady in Northern trades.

A broad view of recent carcass cutout values shows plenty of strength in wholesale boxed beef prices. To contrast current values to a year ago, CAB and commodity Choice cutouts are 14% higher.

Workshop training events for managers and employees of feedyards and related industries are scheduled for June in Kearney, Neb., and Garden City, Kan.

With the grilling season set to kick off, lots of attention is focused on beef demand as the tightening of beef supplies will increase the pressure for higher wholesale and retail beef prices.