While some cattle market analysts are saying the downside price risk for fed cattle is diminishing, there is little in the market to recommend a near-term rally. Wholesale meat supplies remain burdensome; the market still favors feeding cattle to gargantuan sizes; any holiday buying by retail grocers or restaurants seems to be left to a … Read More

The USDA is cutting back on its forecasts for total meat production this year and next as industries reduce slaughter rates and feedlot placements. The USDA made its new forecasts known Wednesday in its December World Agricultural Supply and Demand Estimates report. The USDA’s total red meat production estimate for this year was reduced 123 … Read More

The price relationship of choice beef over select likely is about to turn south within the next two weeks as seasonal demand begins its winter decline. Last week, the spread between the choice and select USDA carcass cutout value was placed at $11.26 per cwt, up from $10.63 the week before but below last year’s … Read More

As feedlots struggle with record losses on unhedged cattle, there is a candle at the end of the tunnel as some analysts foresee lower feed costs next year. By some calculations, current feedlot losses are estimated at more than $500 a head.  But relief may come their way slowly as feeder cattle prices already are … Read More

Managed money, another term for large commodity funds, boosted their net long position slightly during the week ended Tuesday, Dec. 1, even though prices were rounding out a nearby high. As of Tuesday, the Commodity Futures Trading Commission’s weekly Commitments Of Traders report Friday reported that managed money held a net long live cattle position … Read More

What a difference a year makes.  After last year, when cattle feeding profits were the second largest going back to the early 1970’s, this year will go down as the worst ever for cattle feeders. Economists estimate it will take several years for US feedlots to climb out of this year’s profitability hole, even though … Read More

As wholesale beef values remain below expectations, packer incomes are being hampered by lower byproduct values. These products consist of the hide, cheek meat, hearts, livers, tongues, bone meal, tallow and other products and often are the heart of profits for beef packers.  Many of the edible items find little value in the US except … Read More