Feedyard
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.
Claiming Easterday Ranches conducted a “fire sale” of one of its feedlots just days before filing for bankruptcy, Tyson Foods asks a U.S. Bankruptcy Court to appoint a trustee to take control of the Easterday estate.
New research shows Enogen corn for feed, fed to cattle as grain or silage, helps convert starch to sugar more efficiently, resulting in more readily available energy for livestock, thus providing environmental benefits.
Cash cattle markets continued its painfully slow climb higher last week, and most feeder anticipated the gain would be faster. Feedyard costs are on the rise, and any gains are most welcome.
The cattle on feed inventory on Jan. 1 (14.71 million head) is a record 57.3% of the feeder cattle supply. This means there are less than two head of feeder cattle available outside feedlots for every animal on feed.
Cattle producers Hugh Sanburg, Norman Voyles, Jr. and Jimmy Taylor are the new leaders of the Cattlemen’s Beef Promotion & Research Board, responsible for guiding the national Beef Checkoff throughout 2021.
While cattle traded higher for the second consecutive week, and the highest since last May, the action was frustrating for feeders who see fundamentals that suggest much higher prices.
Regulatory activity may be the single greatest threat to U.S. food production as it impacts the entire supply chain from the producer to the consumer. It appears U.S. regulatory activity is increasing.
Cattle feeders showed they have the resolve to fight for higher bids during last week’s cash cattle trade. The market rallied $3 as the futures market continues to suggest better days ahead.
Cash cattle traded mostly $3 higher on the week, despite light volumes and varied interest from packers. April live cattle futures posted a key bearish reversal, but closed lower for the week.
Claiming losses of “more than $200 million” in connection with “200,000 cattle that did not exist,” Tyson asks for a court-appointed receiver to takeover Easterday Ranches in Washington state.
On-feed numbers indicate that packers could be running low on committed cattle, which should force some packers back into the cash market in the coming weeks.