Marketing-Communications
Both fed cattle and feeder cattle markets traded at softer prices for the week.
Winter weather could continue to help drive cattle prices higher.
Fed cattle led the parade with cash prices $3 to $4 per cwt higher.
The volume of cattle and calves sold the week ended Jan. 13 was called the second largest in five years, with prices steady to uneven.
As America’s cow herd dropped to 60-year lows two years ago, ranchers saw an economic incentive to save and breed replacement heifers. Demand for the young females spiked, creating a profitable niche market which now appears to have flamed out.
The Fed Cattle Exchange is helping the beef industry by delivering another data point for price discovery through an online live cattle auction.
Feedlot marketings were up 16.6% in November, while placements rose 15%.
Only minor changes are projected by the latest WASDE report for beef production and cattle prices.
Cattle prices have climbed to their highest point since August.
Commodities dropped 40-60% in value the past few years. How much longer will the slide continue?
Texas ranchers have 600,000 more cattle and calves than they did two years ago, according to the Texas Cattle Feeders Association. Packing plants have less competition and plenty of cattle to choose from, so they’ve dropped the amount they’re willing to pay for wholesale cattle.
Bullish fund holdings signal ‘change in sentiment’ for prices.
Cattle prices went from record highs to record lows in just two years, and it has cattle producers searching for answers.
The late October rally in cattle markets appears to have gained momentum this week.
Animal feed and protein unit was biggest profit contributor.
Quickest buildup in 30 years ‘snuck up’ on beef industry.
This month’s numbers continue the trend of increasing heavy placements, with cattle larger than 800 pounds seeing a 21.2% year-over-year increase while cattle less than 600 pounds saw an 8.9% year-over-year decrease in placements.
Department of Agriculture to add Fed Cattle Exchange data.
After a few weeks of positive price movements in the feeder cattle business, there was a small relapse this week.
The cattle markets continue their slide through the late summer and last week’s news suggests this will persist into the fall. Volatility remains the watch-word – but the overall trend remains down.
Changes in feeder cattle prices recently have potential impacts for cow-calf and stocker producers this fall.
August WASDE feeds the bears on crop markets, could it also feed the bulls (and steers) this fall?
USDA’s August Cattle on Feed report said July marketings were down 0.7%, July placements up 1.6%, and the number of cattle on feed up 1.6% at the start of August.
The August WASDE predicts this fall will bring our first 15 billion bushel corn harvest and the first 4 billion bushel soybean harvest. This is good news for feeder cattle prices.
The CME Group announced more changes that include discounting live cattle futures at a delivery location and revising quality grade specifications.
Until the market gains some consistency with what is happening in the country then the futures market is about as risky as playing croquet in the alligator pit.
While marketings were largely in line with the pre-report estimates, June placements were the big surprise, only up 3 percent compared to last year.