Feedyard
Cash cattle markets carried a firmer tone most of the week but hopes for solid price gains were dashed by two days of declining futures prices. USDA’s Cattle on Feed report was consistent with trade estimates.
The first hint of green grass was evident throughout much of the Midwest last week, and moisture across the High Plains was welcome with warmer weather on the way. Demand for grass cattle was high.
Cattlemen experienced a wide variety of weather across the Central Plains and mountain states last week, bringing much-needed moisture along with some unwelcome cold temperatures.
Cash fed cattle traded at steady money for a sixth consecutive week. A late-winter storm brought some much-needed moisture to the High Plains.
The calendar still read January the last time cattle prices saw an advance. Cattle feeders believed they were gaining market leverage and demand might soon spike. Instead, cattle finished a sixth week trading steady.
The benefits of protein as part of a healthy adult diet was drawn from checkoff-funded research conducted by North Dakota State University and presented to dieticians and nutritionists at a recent symposium.
The CME Group has begun publishing a Boxed Beef Index, a new pricing tool that tracks daily value further down the supply chain, focusing on the prices paid for Choice and Select cuts of beef.
For the second consecutive week, feeder cattle auction receipts increased substantially following February’s storms. Prices, however, declined again for the second week as demand was called moderate to good.
There appeared to be more cattle trade than what we have seen for several weeks, but with only one or two packers needing cattle it was difficult for feeders to push the market higher.
Proposed legislation that is perceived to make markets work better and solve a problem often has the opposite effect, argues Sterling Marketing president John Nalivka.
USDA’s Animal Health Monitoring System (NAHMS) is conducting a national study focusing on cattle health and management in U.S. feedlots with at least 50 head.
The Cattle Transparency Act of 2021 was introduced in the Senate to mandate weekly minimum cash cattle trades. NCBA policy supports a voluntary approach to increase negotiated trades to regionally sufficient levels.
The first week of March saw warm temperatures across most of the Central Plains, but cash cattle prices were frozen in neutral with feeders unable to wrangle additional market leverage.
While Tyson’s lawyers were filing a lawsuit on Monday against one of the packer’s largest cattle suppliers, the ink was still drying on the sale of one of that supplier’s feedlots to one of Tyson’s competitors.
Beef packers continued to maintain their strangle-hold on the market this week. Rising boxed beef cutout prices will pad packer profits – likely to exceed $400 per head.
There are few no-risk options in the cattle business, but calves with reputation, high-growth potential and a well-executed health program should provide cattle feeders with relatively fewer health challenges.
U.S. Cattlemen’s Association supports the Cattle Market Transparency Act, which seeks to ensure regionally sufficient negotiated cash trade, and equipping producers with more information to aid marketing decisions.
Packers, as usual, were in a position of leverage and needed very little cattle for the next week’s harvest. This continues to be the biggest problem with driving the cash price higher.
Cattle numbers will continue to contract in 2021, and producers will gain leverage on packers and retailers and margin distribution will be more equitable, according to CattleFax.
U.S. beef exports are expected to increase modestly in 2021 to reach the second highest level behind the 2018 export record. A key to export growth includes continued growth in the China/Hong Kong market.
The “Discovering True Carcass Value Webinar” sponsored by Certified Angus Beef will explore cutout values and how CAB carcasses add value beyond Choice.
Beef production slowed to a virtual standstill in the South due to extreme winter weather. Heavy demand on electricity and natural gas limited packers from running at capacity, and their need for inventory was limited.
Last week’s winter storm and brutally cold temperatures caused many auction markets to cancel sales. Those that were open saw stocker and feeder cattle prices higher.
The U.S. Roundtable for Sustainable Beef (USRSB) announces the launch of additional sustainability modules for both the feedyard and auction market sectors.
The feedlot situation in early 2021 is a carryover from the disruptions and unusual dynamics last year. For the entire year in 2020, feedlot placements were down 4.0 percent.
Negotiated cash cattle prices traded higher in all regions while many feeder cattle auctions were cancelled due to winter snow and brutal cold temperatures. Cattle on Feed 1% higher on Feb 1 compared to last year.
Four packers participated in negotiated cash trade in the South last week, but their bids were disappointing as none needed additional inventory.
Negotiated cattle traded steady to higher for the week with moderate volumes ahead of a major winter storm that is likely to increase feeding costs and reduce market weights.
In December 2020, Congress added a provision to a COVID relief bill establishing a Statutory Dealer Trust, which give unpaid sellers first priority rights in their livestock or the proceeds of their livestock.
The Masters of Beef Advocacy (MBA) program launched updated advocacy training modules – MBA NextGen. Updated information and resources to help answer consumer questions are all accessible on their website.