Packer
The U.S. and global economy is in uncharted waters. There are many unknowns about the timing, severity and aftermath of the disease. For beef, there are longer-term questions about the overall impact on demand.
Cash fed cattle prices traded lower as futures prices set new lows for the week before a Friday rebound.
While cash fed cattle traded lower the past two weeks, traders anticipate a higher market toward spring as cattle numbers tighten seasonally and beef demand improves.
There was some hesitation among buyers this week as the CME futures had a downward turn and sell-off early in the trading period. Steers and heifers sold lower at auctions.
Cattle feeders were unable to push the cash market higher, settling for mostly steady money as packers were noticeably less aggressive with much narrower profit margins.
A pair of lawsuits filed last year involving a packing company and two producers have been dismissed following a confidential settlement.
Lawyers for America’s largest beef packing companies asked a federal judge on Friday to dismiss the class action suit filed against them by a group of ranchers last year.
Over the past 10 weeks, cattle feeders have gained market leverage in a rally the likes of which have not been seen in many years.
Packers were aggressive in obtaining inventory to start the new year, and the result was a cash cattle market that gained $2 in both the north and south.
Packers were eager to push their inventory higher last week and prices in all regions responded by moving $1 to $2 higher.
Steers and heifers sold at auctions this week steady to $3 lower. AMS said with the holidays and the end of the year fast approaching, many auction markets saw heavy runs of cattle.
Sharply higher carcass weights have boosted beef production, though another round of winter weather hitting parts of cattle feeding country may temper that in the last few weeks of the year.
In anticipation of reduced harvest during the holidays, packers are sitting in a good inventory position going into the next few weeks.
Brazilian federal prosecutors have charged JBS S.A. and its holding firm J&F Investmentos, along with 14 other individuals, for alleged fraud in the approval of investments and loans by national development bank.
Last week was one of the last chances for cattle feeders to push the market up to the $120-plus price range. Three packers were in the market to buy cattle by feeders chose to settle for steady money.
NCBA says it will work with the USDA’s Food Safety Inspection Service (FSIS) to address the Agency’s longstanding policy on geographic origin statements for beef.
Cash fed cattle trade was active on Wednesday, surging $2 to $4 higher the day before Thanksgiving, with demand strong in all major cattle feeding regions.
The cash cattle market continues to be the best broken-record producers ever heard of late as three of the four major packer participated in the live trade last week.
Cash cattle traded higher again and all four major packers participated in last week’s trade, including Tyson for the Finney County, Kan., plant.
Packer market participation wasn’t as robust as it had been in earlier weeks, and packers have slowly added to their inventory ahead of the holidays.
Cash fed cattle prices traded higher in all regions for the third consecutive week, marking a 16% gain since the lows were set in September.
Tyson Fresh Meats said early Monday the construction and repairs to its Finney County beef complex are nearing completion.
Jeffries Financial Group announced it has entered into a definitive agreement to sell its remaining 31% interest in National Beef to Marfrig Global Foods SA.
Strong wholesale beef prices keep packer margins solidly profitable and encourage packers to be aggressive participants.
Packers were still hunting front end cattle late last Friday, knowing that feeders would have their sights set on a higher December board for the trade this week.
Boxed beef prices increased about ten percent over the month of October into early November, a significantly higher increase than the normal seasonal bump.
America’s four largest beef packers face another lawsuit claiming antitrust violations since 2015, this one filed by a California distributor seeking treble damages.
Proposed legislation claims the lack of a federal definition of beef or beef products has created “opportunity for marketplace confusion and consumer fraud,” say the bill’s authors.
Friday’s USDA cattle on feed report pegged heifer numbers at 39.1 of feedlot inventories, the highest percentage in more than 18 years, and year-to-date heifer slaughter is up more than 7%.
Beef packers continued to show signs that they still need cattle to meet the demand of their customers and paid higher prices last week.