Fed Cattle
The pendulum continues swinging toward cattle feeders as cash prices jumped $3 last week and left packers with their largest negative margins in nearly six years.
Cattle feeding margins declined last week after modest declines in cash cattle prices. Pork producer margins remain underwater.
Cattle feeders continued gaining market leverage this week as prices moved higher and slaughter levels declined.
Cattle feeders and packers were in a standoff most of the week with cash trading only moderate in all regions. Cattle feeders are in a good position as inventories and carcass weights declining.
Cash cattle markets traded modestly lower in another week of lackluster activity. Northern regions experienced adverse weather conditions added stress to cattle and reduced weights.
Packers were successful in filling their needs at steady money this week as wholesale beef prices moved lower. Feedyards were content to reduce showlists but remaining cattle are priced higher.
Cash cattle trade was called active with packers seeking to add inventory. Retailer buying was also active as they anticipate a seasonal slowdown in supplies.
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Monday’s reveal of the Senate’s updated cattle market reform bill generated some strong opinions from a cross-section of industry stakeholders, but no consensus.
Once operational in late 2024, American Foods Group’s new beef facility in Warren County, Missouri, will process 2,400 head of cattle per day.