The USDA’s World Agricultural Supply and Demand Estimates report tightened up on its estimates of 2020 and 2021 red meat and poultry production from the December report. The 2020 beef production forecast was reduced as fourth-quarter cattle slaughter slowed.  The pork production forecast was reduced as the slower pace of slaughter late in the year … Read More

Current breakeven and fed cattle price projections suggest net first-quarter returns of a negative $75 a head, similar to current estimates of 2020 returns, said Michael Langemeier, University of Illinois at Urbana-Champaign, agricultural economist, in a study paper published by Illinois farmdocdaily. Similar studies suggest net feeding returns in the second quarter of 2021 will … Read More

Large commodity investment funds, known as managed money, cut their collective net long live cattle futures position in the week ended Tuesday while hedgers trimmed their combined net short position, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.   FUNDS REDUCE CATTLE EXPOSURE   As of Tuesday, the … Read More

The US beef industry is entering 2021 with a near-record number of cattle on feed and marketings below a year ago, indicating a large amount of meat coming to market in the first quarter to pressure prices, said Elliott Dennis, livestock Extension economist at the University of Nebraska/Lincoln, in a letter to Extension Agents. Historically, … Read More

Agricultural producer sentiment improved in December according to the monthly Purdue University/CME Group Ag Economy Barometer. Purdue University Agricultural Economist James Mintert, said in a release that the barometer increased seven points from November to a reading of 174.  The barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, also were … Read More

Managed money, or large commodity index funds, increased their collective net long live cattle futures position in the week ended Tuesday, Dec. 29, as hedgers trimmed their net overall short position slightly. The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report.   FUNDS SLIGHTLY LONGER CATTLE   As of Tuesday, … Read More

Several factors will shape cattle markets for the first few months of 2021 at least, providing a mix of opportunities and challenges, said Derrell Peel, Oklahoma State University Extension livestock marketing specialist, in a letter to Extension agents called Cow/Calf Corner. Strong beef demand and tightening cattle supplies provide cautious optimism for cattle markets, Peel … Read More