Latest News From Fed Cattle

The margin spread between packer losses and feedyard profits expands as wholesale beef prices continue their retreat. Pork producer profits continue increasing.

Kay Russo, DVM, Novonesis technical services manager for dairy and poultry, emphasized the situation is rapidly evolving and more clarity will come with time as researchers learn more.

Improving prices for live cattle and wholesale beef lifted margins for both feeders and packers. Pork producers also found improved margins but remain in the red.

Winter weather dominated livestock markets the second full week of the year with slowing harvest and transportation. Cattle and hog prices were steady and margins improved modestly, yet losses remain significant.

The Grinch is writing closeouts ahead of the holidays as cattle and hog profit margins tumble to their lowest point since the summer of 2020, just months into the COVID pandemic.

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.

Cattle feeders and beef packers both printed closeouts with red ink last week, slight advantage packers. Pork producers also operated underwater but pork packers saw improving margins.

Cattle feeding margins declined nearly $100 per head last week with lower cash bids and rising costs. Pork producer margins remain mired in red ink.

Packers applied the brakes and cattle slaughter declined another 13,000 head last week and capacity utilization dipped 9%. Pork producer margins print $7 in the red.

The spread between cattle feeding margins and packer margins narrowed modestly last week. Pork producers remain profitable.

Cattle feeders continue to gain market leverage as packers see pressure from declining wholesale beef prices. Pork producer margins remain solidly in the black.

There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.

Cattle feeders sold more cattle last week than any week this year and at the highest price in history. Pork producers saw modest profits.

Profit margins for cattle feeders and packers continue pacing in opposite directions as shrinking supplies of market-ready cattle drive negotiated cash prices higher.

Cattle feeders experience largest average profits in seven years as packer margins dip into the red.

The Protein PACT Academic Advisory Council is formed to advise on research priorities and the latest evidence related to meat production and consumption.

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

After Tyson Foods reports anemic first quarter sales and downgrades its forecast, The Wall Street Journal editors wrote, “This doesn’t look like an antitrust conspiracy or market oligopoly.”

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.

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

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

Cattle and hog harvest rates were lower last week with higher cash prices paid to farmers and feeders. Margins for both beef and pork packers are trending lower.

Cattle prices moved higher last week but cattle feeding margins remain modest. The supply-demand fundamentals are trending in favor of cattle feeders.

Packer margins remain in the red even as wholesale beef prices rallied $9 per cwt. and cash cattle prices were near steady.

Beef packers saw per head losses nearly double last week as wholesale beef prices tumbled $7 per cwt. lower. Pork processors are also found negative margins and producer margins remain short of breakeven.

Profit margins for both cattle and hog finishing operations saw modest gains last week but also carry significantly higher feed costs than a year ago.

Autumn’s fed cattle price rally has pushed average cattle feeding margins through the $200 per head barrier for the first time since well before the pandemic.

The highest cash fed cattle prices in seven years provided good profits for cattle sold last week but rising costs are pushing breakevens higher.

The pendulum continues to swing in cattlemen's favor as cash prices rally $3 per cwt. Pork producers see improved profit margins with a $7 per cwt. rally.

Market leverage has shifted dramatically toward ranchers and cattle feeders over the past two months. The combination of rising cattle prices and declining wholesale beef prices has eroded historic packer margins.

The Justice Department says it has filed a memo in federal court with its recommended sentence for Washington rancher and cattle feeder Cody Easterday who pleaded guilty in a $244 million "ghost cattle" scheme.

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.

Despite chatter about a global economic slowdown, U.S. beef exports remain on a torrid pace in 2022. Pork exports fell short of last year's record pace.

Grocery retailer Giant Eagle alleges the nation’s large beef packing companies have exploited their market power to limit the supply of beef and raise prices in a new lawsuit filed in Chicago on Wednesday.

Lower average cattle prices last week cut average feedyard margins by $43 per head last week, while pork producers saw a $5 per head increase in average margins.

Cattle feeding margins improved with a $2 per cwt. increase in cash cattle prices while farrow-to-finish hog margins declined modestly on slightly lower lean carcass prices.

Both cattle and hog finishing estimated margins were positive last week despite rising feed costs across both enterprises. Cattle slaughter totals increased while hog processing numbers were near steady.

Average cattle feeding margins improved the final week of March, while average farrow-to-finish hog margins declined modestly.

Continued demand for non-GMO feed for livestock will increase greenhouse gas emissions on farms, and raise consumer prices for meat, milk and eggs, according to a study by Iowa State University.

In an exclusive Drovers commentary, the president and CEO of the North American Meat Institute says despite popular arguments, America's cattle and beef industries are better without government intervention.

Modest increases in cash prices for cattle and hogs helped boost average feeding profit margins the final week of February, while margins for beef and pork packers declined.

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

Tyson officials said Friday night's fire caused "major damage," but the company is working "as quickly as possible" to return its Holcomb, Kan., facility to operation.

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

A “large fire” Friday night (Aug. 9, 2019) closed the Tyson Foods beef facility at Holcomb, Kan., and the company said the plant will be closed indefinitely.

USDA's acreage numbers injected a substantial amount of uncertainty into both markets that appears set to stay in place throughout the summer, according to University of Illinois agricultural economist Todd Hubbs.

U.S. pork production is exceeding the industry’s expectations, while cattle weights could fall as animals try to keep warm.

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

Profit margins for both cattle feeders and beef packers improved last week, with packers gaining a slight edge.