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

“Cash is cash and futures is futures” was one of the trading truisms of one old-time lumber trader, and the axiom appears to be alive and well in the current cattle markets as well. The late Tom Martin had many trading rules, most of which were meant to curb his enthusiasm about trading and to … Read More

Cattle markets may be in for an uphill battle as slaughter-ready feedlot supplies mount and demand fades, and the current futures price structure may be overdone, analysts say. Currently, live cattle futures prices rise for each successive delivery month through Apr and then drop sharply, and traders are concentrating on moving positions into the Feb … Read More