Latest News From Feedyard

Labor issues continue to plague the packing industry with this week’s slaughter volume lighter than anticipated. Worker absenteeism due to COVID has hindered packers’ ability to run full throttle and prices suffered.

Evaluating market fundamentals has led most analysts to project stronger price trends over the next few years. But just how high could prices go? Studying market patterns over the last 30 years provides valuable clues.

Developers of Cattlemen's Heritage Beef Company are seeking investors for a proposed $450-million beef packing facility to be built in western Iowa south of the Omaha/Council Bluffs area.

Is the Biden Administration's plan for the beef industry workable, or does it ignore the economics of market structure and pricing across the meat industry supply chain?

Cattle and beef market dynamics the past year were nothing if not volatile, and in some ways, unprecedented. Supply chain imbalances and processing sector issues have been the focal point of beef price inflation.

Momentum continues to build for cattle feeders as closeouts saw average profits increasing during the final week of 2021. Farrow-to-finish hog operations continue with negative profit margins.

Packers needed cattle last week and pushed the cash market higher as the holiday-shortened weeks came to a close.

During the past six months, beef consumers have reinforced their preference for product at the top end of the market.  Both branded and Prime products have been supported by unprecedented demand.  

The December Cattle on Feed report, released on Friday, was the sixth consecutive month of year-over-year decreases in feedlot inventories, though November and December totals were only down slightly.

Cattle feeders anticipated cash cattle prices would be softer since packers were working with holiday-shortened hours last week. Packers will need cattle this week to fill full-week schedules.

Cattle markets have improved significantly in the final weeks of 2021, with market analysts projecting those positive trends to continue in 2022.

Optimism that has built in feeder cattle markets in the second half of the year has been enhanced and consolidated with the fed cattle market breaking out and moving sharply higher in the last two months of the year.

Colorado State University will receive grants totaling nearly $1 million to study ways to reduce the risk of feedlot heart disease (FHD), a disease which has increased in recent years.

Cash bids were scarce last week with packers facing shortened slaughter schedules the next two weeks. Cash prices were $2 lower in all regions.

Through genetic potential, sensors from the environment, and actual practices, producers can predict when an animal is going to be finished or when the animal is going to be optimum in its marketing.

Cattle feeders found softer demand from packers last week, resulting in a $2 per cwt. decline in cash prices. Holiday slaughter schedules the next couple of weeks will likely prevent any price gains until the new year.

Consumers have access to greater differentiation and higher-quality beef products now, more than ever. As a result, beef spending has outpaced the competition since 2000. Cattle prices have risen as a result.

Changes in the beef supply chain in recent years have had an increasingly greater market impact. Pricing cattle off the cutout would provide a negotiating a formula that captures a relevant share of the total value.

Efforts to collect signatures for a petition to recall the Beef Checkoff fell "far short" of the number needed to trigger a referendum. NCBA president Jerry Bohn calls it "a de facto referendum" supporting the Checkoff.

December has started off on a high note in the fed cattle sector and all of us on the cattle side of the supply chain should be made well aware of what’s ahead in 2022.

Researchers at Purdue University successfully developed an on-site BRD test that provides results within an hour. The team has steadily advanced the point-of-care technology to address the disease.

At the end of November, 69 percent of the U.S. was abnormally dry or worse with over 53 percent in some degree of drought. This could result in another severe round of cow liquidation in the first half of next year. 

Higher prices for cash fed cattle has helped cattle feeders gain currentness and improve their market leverage over the past four weeks.

The Kansas Livestock Association elected Phil Perry of Oskaloosa as its president and Shawn Tiffany from Herrington as the new KLA president-elect during the group’s annual business meeting in Wichita.

Packers have margin to spread back upstream to the feedlot sector at their discretion, and it appears that their need to fulfill orders for high-quality product for upcoming holidays is likely a motivating factor.

Cattle feeders saw average profit margins exceed $200 per head last week while pork producers found losses of $44 per head, according to the Sterling Profit Trackers.

Cargill has served notice of a lockout for employees at its High River, Alberta, beef plant if the company and union employees do not reach an agreement before a December 6, deadline.

The highest quality vaccine that producers purchase may be of little value if not handled and stored properly.  Don't overlook key principles when preparing and administering vaccines and other animal health products.

What does traceability mean for your operation? The U.S. CattleTrace Annual Symposium in Wichita, KS, Nov. 19. concluded with a panel to answer this specific question for attendees.

The recent breakout of fed cattle prices after struggling under the weight of beef packer capacity constraints clears the way for cattle markets to move forward with the optimism that has been building in recent months.

As the marketing year winds down, Sterling Marketing president John Nalivka provides an overview of his market outlook for 2022 and beyond.

The week before a holiday is not usually ideal for pushing the market higher, but last week proved to be just the right combination to support a rally.

Cattle prices are higher now compared to last year and are expected to continue improving in 2022.  Live and Feeder futures have priced in considerable optimism for 2022.

Market leverage continues to move toward the cattle feeder as prices rose for the third consecutive week. Cattle on feed numbers were slightly lower while placements and marketings were near industry estimates.

Cattle Feeders Hall of Fame winners have been announced, with inductees and award winners honored during the 13th annual banquet prior to the 2022 Cattle Industry Convention and NCBA trade show in Houston in February.

Animal disease traceability (ADT), as defined by the United States Department of Agriculture (USDA), is knowing where diseased and at-risk animals are, where they’ve been, and when.

Proponents of COOL say the law provides an advantage to U.S. beef producers and enables them to earn higher prices. But that view doesn't consider Canadian prices that have marched in lockstep with the U.S. market

Warren County, Missouri, has been selected by American Foods Group (AFG) as the planned location for a new state-of-the-art beef processing facility, pending final approval.

Genetics solutions exist to achieve superior feed efficiency and superior carcass quality. Both are relevant to profitability in cattle production.

The fall feeder run is in full swing with calf prices moving counter-seasonally higher. It is typical for the middle two weeks of November to have the largest weekly auction totals for the year.

The cash fed cattle market found its way higher again last week, with four or more packers in the market all fighting for cattle every week for the first time in two years. 

The rally in cash fed cattle prices continued this week with packers searching for inventory and bidding higher money. Cattle feeders have some leverage for the first time in a long time.

Green Plains Cattle Company LLC announced its new company name — Cobalt Cattle Company LLC — taking the final step toward operating as a stand-alone company focused solely on feeding and growing cattle.

All parties upstream of the packing sector are elated, and likely relieved, to see the price break free from the furrow between $120 and $125/cwt that the fed cattle trade had been digging for 19 weeks.

Last week cattle feeders found themselves in an environment they had not seen since August of 2019.  Four packers were in the market competing for the cattle that were available on the list.

Cattle feeders found willing packer buyers even as they priced cattle higher throughout the week. Higher prices were supported by solid gains in the futures markets.

Prosecutors said Robert Blom altered purchasing agreements, misled investors and sold the same groups of cattle to multiple buyers using the money to pay back previous investors.

Brazilian meatpacking giant JBS SA says it will use Bovaer, a feed additive to reduce methane emissions in its global supply chains.

Zoetis announced Synovex® One Grower as the new trade name for the long-duration cattle implant producers have known as Synovex® One Grass.

A recent bill passed the House Ag committee outlines the creation of a contract library to provide a public listing of terms and details in order to provide greater market transparency.