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Posts by Paul Dykstra :

Fed Cattle Projections Factor in Carcass Value

Date: Jan 26 2023

| CAB Insider

Among cattlemen who understand the math to determine the price for a set of feeder cattle, the question becomes: “How are these feeder cattle bringing so much money?” Mind you, it depends a lot on one’s perspective and sector as to whether or not this conversation comes up. After all, prices are highly variable, as are cattle and regional supply/demand dynamics.

Rib and Tenderloin Defy Gravity

Date: Dec 14 2022

| CAB Insider

Fed cattle prices found a stable range in the past three weeks after making the $3/cwt. upward leap the week of Thanksgiving. Last week’s negotiated cash trade was on a smaller weekly head count and packers kept a lid on the upward price momentum.

Demand for Premium Quality Beef High, Supply Showing Improvement

Date: Nov 30 2022

| CAB Insider

Fourth quarter demand for premium quality grade beef carcasses is predictably high. End users—grocery stores in particular—place orders several weeks ahead of the December timeline to fulfill holiday middle-meat needs. Prime grade carcass supplies have disappointed throughout the year with 11.2% fewer total pounds of Prime carcasses acquired so far.

Tight Cattle Supplies and Increasing Carcass Weights

Date: Nov 16 2022

| CAB Insider

The current cattle markets can provide a history lesson for those new to the scene. To give a quick recap of that era: record-high prices, fueled by a supply chain starved for cattle numbers, came to an abrupt end. This signaled the end of tight cattle supplies, caused by drought liquidation, and beef cattle producers were able to restock the nation’s cow herd.

CAB Refines Hot Carcass Weight Specification

Date: Nov 02 2022

| CAB Insider

The brand’s commitment to aggregating winning outcomes is reliant on the relevance of the brand’s carcass specifications to each sector of the beef industry, and ultimately the consumer. This commitment to evolve as the overall industry progresses has resulted in the brand’s recent adjustment of the hot carcass weight maximum to 1,100 lb.

Texas Grade Tumbles

Date: Oct 05 2022

| CAB Insider

Following beef quality grade trends may not be as exciting as college football, but for beef marketers quality grade is the game. This season is nothing short of dynamic, as we’ve been waiting on improvement in what has been a subpar carcass marbling achievement across the northern tier of cattle feeding country most of this year.

Will Quality Premiums Continue Higher

Date: Sep 21 2022

| CAB Insider

Today’s Premium Choice and Prime beef production volume is monumentally larger than it was in 2006 when just 14% of Angus-type carcasses met CAB specifications, compared to our latest annual average of 36%. The current small drops from record-high production volumes create supply concerns among grocers and restaurant partners in today’s demand-driven environment.

Corn Basis Factors

Date: Sep 07 2022

| CAB Insider

The major shift in corn prices likely doesn’t entice cow/calf producers to consider retained ownership for the first time. Even though prices have been exceptional for calves and feeder cattle, it’s telling to take a look at feedlot breakeven projections to understand where prices are originating.