Fed Cattle
Lee Schulz and Chip Flory discuss current supply and demand in the beef and pork industries and what’s ahead.
Cash cattle averaged $204.12 per cwt., up from last week, while lean carcass hog prices came in at $81.79 per cwt.
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.
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.
Little change was found for livestock feeders last week as near identical week-to-week market prices held margins solidly in the black. Beef packers saw modest improvement with higher wholesale beef prices.
After briefly exceeding $400 per head, cattle feeding margins tumbled $75 last week, but the balance didn’t go to the packer as their losses increased. Pork margins held firm.
A solid rally for cash fed cattle coupled with declining total feeding costs helped boost cattle feeding margins nearly $85 per head above the previous week. Pork margins now over $40 for the fourth consecutive week.
Livestock feeders find solid profits as the summer grilling season begins. Beef and pork packers continue to struggle with negative margins.
Cattle feeders and pork producers both saw higher cash prices for harvest-ready animals last week and margins improved accordingly. Packers continue to struggle with negative margins.
Cattle and hog feeders find dramatically lower feed costs compared to last year with higher live anumal sales prices. Beef packers continue to struggle with negative margins.
The margin spread between packer losses and feedyard profits expands as wholesale beef prices continue their retreat. Pork producer profits continue increasing.
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.
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’ profits last week were $271 per head more than at the same time last year when $114 per head losses were recorded.
Cattle feeding margins jumped nearly $20 per head higher last week to average $216.
Profit margins for both beef and pork producers fell slightly last week, yet both sectors remain solidly profitable.
Profits continue to increase for both cattle and hog producers.
Profit margins for cattle feeders rose significantly in the past week.
Cattle feeders’ profits last week were $273 per head more than at the same time last year.
Profit margins for cattle feeders moved higher last week while pork producers saw a dip in profitability.