Latest News From Cattle Market Reports and Analysis

Cattle feeding margins fell deeper into the red while packer losses doubled from the prior week. Pork producer margins have now printed red every week for the past year.

Although August exports of U.S. pork were steady year-over-year, beef exports were well below the large totals of August 2022, USMEF reports. Pork exports were led by Mexico and beef exports showed improvement over July.

U.S. pork exports wrapped up an excellent first half of 2023 with another strong performance in June. Although numbers are below the record pace established in 2022, June beef exports topped $900 million in value.

Wholesale beef prices continue to support packer margins even as negotiated cash cattle trade well-above the five-year average. Pork producers enjoy a market rally that has lifted margins out of the red.

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

Beef exports set records for both volume and value in 2022, while pork export value finished with the third-largest year on record.

Cattle feeders are finding modest profits on market-ready cattle early in the New Year, but replacement feeder cattle prices are driving projected breakevens to eight-year highs.

Spiking wholesale beef prices the week before Christmas helped lift packer margins into the black while increasing cattle feeding margins.

Average feed costs for finishing cattle and hogs are 25% to 28% higher than the same week last year, according to Sterling Marketing's weekly calculations.

The average cost of feeding a steer to finish weight was 25% higher for cattle marketed last week and is projected to be 31% higher for cattle placed on feed last week at roughly $600 per head.

Cattle and hog feeding both saw solid average profits for the week ending April 2, boosted by higher average farmgate prices. Cattle were positive for the second week, while positive hog margins entered a third month.

Cash prices for both cattle and hogs advanced last week leaving feeding margins for both species solidly in the black. Hog margins were positive for the eighth consecutive week and cattle climbed out of the red.

Profit margins for cattle and hogs continue trending in opposite directions as feedyard closeouts slipped below breakeven and hog margins saw another boost from higher prices.

Cattle and hog finishing margins were headed in opposite directions last week, with lean hog prices enjoying a three-week rally while cattle prices were stuck in neutral for a second week.

Cattle feeding margins improved $60 per head the week ending Feb. 12 and hog margins reported profits for the second consecutive week as lean hog prices rallied.

Average feedyard closeouts saw modest profits for cattle last week as cash prices improved. Hog finishing margins declined from near breakeven to a loss of $6 per head.

After a one-week reprieve, cattle feeding margins are back in the red. Pork producers saw a $7 per head improvement, but remain below breakeven.

The return of slaughter capacity to pre-coronavirus levels is good news, but the backlogs of cattle and hogs from the weeks of reduced capacity harvest remain a burden to producers in both markets.

President Donald Trump told reporters Wednesday he has asked the Justice Department to look into allegations that U.S. meat packers broke antitrust law.

Sharply higher beef cutout values produced windfall profits for beef packers last week while cattle feeders saw closeouts with average losses about steady, according to the Sterling Beef Profit Tracker.

Beef packers saw their margins decline to the lowest level since before the Tyson packing plant fire August 9 as beef cutout prices declined and cash cattle prices increased.

Last week’s $1 increase in cash fed cattle prices did little for feedyard profits, but the $6.40 rally in wholesale beef prices added another $25 onto already large packer margins.

The combination of shrinking packer profits and smaller feedyard losses over the past six weeks has reduced the packer/feeder margin spread by 27%, according to the Sterling Beef Profit Tracker.

Last week's $2 rally in cash cattle prices helped narrow the spread between feedyard losses and packer profits.

Beef packer continued with a stranglehold on cattle markets last week, buying a few cattle to fill their needs at lower money and keeping operating margins historically high.

Cattle feeding margins slipped further into the red last week on soft cash prices, while packer margins climbed to extreme heights.

As expected, beef packer margins jumped wildly higher the week ending Aug. 17, while cattle feeding margins slipped into the red.

The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.

Average cattle feeding losses totaled $106 per head for the week ending June 21.

Cattle feeding profit margins retreat further with a weaker cash market and limited packer interest.

Last week's $2 per cwt. decline in cash cattle prices left feedyard margins at near breakeven levels.

Cattle feeding margins are rapidly declining as cash cattle prices retreat from spring highs

Cattle feeding margins improved $43 per head last week as cash prices gained nearly $2 per cwt.

Cattle feeding margins improved $16 per head last week as cash prices inched higher less than $1 per cwt.

Cattle feeding margins declined by $80 per head last week as cash prices slumped $1 to $2 per cwt.

Profit margins for cattle sold for slaughter last week declined $55 per head, according to the Sterling Profit Tracker.

Cattle feeding margins improved modestly on higher cash prices last week. Packer margins declined slightly.

Industry-wide average cattle feeding margins improved last week, while pork producer margins declined.

Feedyard closeouts saw modest improvement last week, but cattle feeders remain frustrated by their inability to push the cash market higher.

Cash cattle prices improved $1 per cwt., helping lift feeding margins to $118 per head, according to the Sterling Beef Profit Tracker.

Both feeding and packing profit margins exceeded $100 per head last week with a $1 rally in the cash fed cattle trade.

For the first time since December, 2017, cattle feeding margins have exceeded packer margins in the Sterling Beef Profit Tracker.

The profit margin spread between packers and feedyards has shifted more than $320 per head since last June.

Cattle feeding and packer profit margins were mostly steady the week ending December 21, with cash prices for fed cattle slightly higher.

Cattle feeding and packer profit margins both declined last week as cash cattle prices were modestly lower.

Cattle feeding profits improved for the third consecutive week as cash fed cattle prices gained $1 per cwt.

Higher fed cattle prices ahead of the Thanksgiving holiday helped lift cattle feeding margins modestly.

Feedlot closeouts averaged a profit of $22 per head last week, while packer margins remain above $200.

Cattle feeders saw closeouts with an average profit of $58 per head last week, down modestly from the week before.

Cattle feeding profits improved with $1 per cwt. higher cash prices and lower feeder cattle prices calculated against last week's closeouts.