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Rising wholesale beef prices and declining packing plant utilization are two indicators to watch as the 2023 cattle markets unfold.

Cash cattle and wholesale beef prices moved higher last week, increasing profit margins for both cattle feeders and beef packers. Pork producers saw modest per head losses.

Profit margins for cattle feeders increased as cash prices moved higher last week. Pork producers continue operating with negative margins.

As cash cattle prices have been on an upward trajectory in 2023, packer margins have correspondingly moved lower. Sterling Marketing’s weekly estimates are printing packer margins red for the first time in six years.

Average cattle feeding margins increased last week as negotiated cash prices set new record highs.

Cattle feeders have experienced their best month in years with prices reaching record levels. Hog producers, however, are struggling to keep margins out of the red.

Cash cattle prices declined last week for the first time in a month, but wholesale prices moved higher for the fifth consecutive week. Prices for yearling feeder cattle placed on feed topped $200 per cwt.

Packers have navigated through the tightest supplies of the season while maintaining profitability. Now, supplies are anticipated to increase seasonally which could swing more leverage in their favor.

Grilling season set to kick off as both packers and cattle feeders operating with profitable margins. Pork producers continue the struggle to reach profitability.

Cattle feeders saw average profits of more than $300 per head last week while pork producers found average losses of about $13 per head.