“Value” in feeder calf marketing is a relative term. All calves have some and the trick is to capture your share, said Paul Dykstra. Success is rooted in your customers he said. Customer changes through the supply chain from feeder, to packer to consumer.
Shocks to the beef industry were all part of 2020’s “unprecedented” theme, but how the market responded was less surprising. That’s from RaboResearch analyst Dustin Aherin. When history is in the making, cattlemen should be innovative.
Randy Blach gave hindsight to the industry’s past 40 years to prepare for the next 40 at the 2020 virtual Feeding Quality Forum. While 2020 is a tumultuous year, perspective gives us hope for the future. There’s optimism for the future, but not without challenges.
Even without a worldwide pandemic, economic shutdowns and disruptions in food processing, Dan Basse would have covered demand drivers at the 15th annual Feeding Quality Forum. Economic wild cards include political outcomes and continued stimulus measures.
Seven weeks of slight improvements in fed cattle pricing came to a halt as packers paid $1 to $2/cwt. less for fed cattle last week. The USDA Cattle on Feed Report, published the Friday before, had some influence, with the August 1 on-feed number posting a record high for the date.
Spot market carcass cutout values are subject to anomalies. Protein buyers may take advantage of opportunities in seasonal shifts, market disruptions or other unexpected changes in supply and demand.
Fed cattle prices have stabilized and improved in the later part of July, but are still lower than a year ago. With a backlog of cattle on feed longer, greater eligibility is joining up with higher quality grades to increase July certified head counts above those seen a year ago.
The past couple of weeks have offered little excitement in the fed cattle trade. Consumer driven economic signals have been passed back to producers because the marketplace has been allowed to differentiate price for cattle and beef product based on quality specifications and other merits.
U.S. beef producers are facing difficult challenges thrust upon them through unprecedented events. Through much debate around fed-cattle marketing and price discovery opportunities, the 50-14 bill was born. Here the Certified Angus Beef® brand addresses the industry.
Packers have proven capable of not only large weekly production but of daily headcounts on par or larger than a year ago. The turnaround in the cattle cycle and the abnormalities of 2020 will further incentivize producers to shrink the nation’s herd.
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