Only a small amount of cash trade occurred this week as packers and feeders were unable to agree upon prices. Packers are buying for two Holiday-shortened weeks that are projected to run only 32 hours of production each week.
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The live cattle market showed its first indication of seasonal weakness coming off of holiday highs. Fed cattle traded at $120 in the South and at $121 in the North, approximately $4/cwt less than the previous week.
Sharing interests, data, information, research, pricing will move us forward. In the end, it will benefit all of us involved, and will make it better for the end user.
A wider price gap between Select grade boxed beef and Choice or better—the Choice/Select spread—always comes back to supply and demand. Consumers vote with their dollars, and recent shifts in merchandising put much more high-quality beef on the ballot, just as those supplies began to fall off.
When consumers hit the retail meat case, cut, color and consistency often guide their beef buying decisions. Cut influences cooking method, flavor, tenderness and price.
Packers held bids until late last week, but live cattle prices did not sag much while waiting. Packers increased harvest by 16,000 head over that weeks’ holiday-shortened numbers, but still fell well short of the previous year.
One of the first and best Certified Angus Beef LLC (CAB) feeding partners, Darnall Feedlot, Harrisburg, Neb., was known for quality even before licensing in early 1999. Gary and Lane Darnall, father and son, signed on with their 20,000-head yard and quickly gained a wider reputation for consistent quality.
Canadian feedlots and ranchers can cooperate to improve beef produced from cowherds across the nation, all in the interest of profitably growing demand. Domestically and around the world, the beef already has a reputation for unsurpassed safety and traceability, along with the high quality of grain feeding.
David gives his market update to keep producers in the know. Packers raised their bids on Wednesday to $123/$124 in the South and $127 in the North in order to lock up needs prior to the long weekend.
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