Wholesale values for hide and offals, the by-products of the beef industry, the value of which often is called the drop credit, has been depressed all year and looks to decline even more. That’s important because the drop credit traditionally is where the packing plant makes its profit margin. What isn’t explained in USDA/Agricultural Marketing … Read More

The Memorial Day holiday is past, and the effect of the holiday on beef markets is complete.  In fact, the summer doldrums appear to be here, said Stephen Koontz, agricultural economist at Colorado State University, in the latest missive to Extension Service personnel from the Livestock Marketing Information Center. The holiday’s effect on prices was … Read More

Estimated cattle feeding margins for cattle sold to packers rose a bit last week but still remained significantly negative, according to the Sterling Profit Tracker from Sterling Marketing Inc., and published by AgWeb. Calculated unhedged feedlot margins for last week’s fed cattle sales was a minus $42.16 per head, up from a minus $57.12 the … Read More

After US/China trade talks broke down over the weekend, and Mexico threatening trade retaliation for tariffs, large losses for hog producers are a real possibility, said Chris Hurt, agricultural economist at Purdue University in this week’s “Farmdoc Daily.” Add to that large pork supplies and rising costs, and Hurt expected losses to continue through this … Read More

After hitting a low of 7,092 contracts two weeks ago, managed money’s new net long live cattle futures position was up to 11,086 as of Tuesday, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday. Managed money, or large commodity investment funds, expanded their net long live cattle futures position as … Read More

On Wednesday, the Federal Reserve Board released its May 2018 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. Keith Good of the “Illinois Farm Policy News” said the report included several observations pertaining to the US agricultural economy.  This is a summary of those comments by district.   … Read More

It’s no surprise to anyone following the cash fed cattle market that total monthly cattle slaughter is running higher than a year ago and the 2012-16 average.  But it’s in what category the increase is taking place that’s important.  Cow slaughter continues to rise. USDA National Agricultural Statistics data compiled by the Livestock Marketing Information … Read More