Highest Fed Cattle Bids of 2017

[errolanderson]

Impressive strength across the U.S. cash cattle market over the past two (2) weeks. Texas and Kansas cash have traded at 2017 highs of $125/cwt. In Alberta, the live equivalent appears to be trading about $1.62/lb . . . a huge improvement over those $1.28/lb bids last September.

Wholesale beef cutouts have been rising of-late as retailers now stocking for the spring BBQ run.

Live cattle futures remain at a significant discount to the actual cash market right now.

[Hopalong]

US live cattle futures predicting ten per cent decrease in price for next year.
Opposite of wheat futures which indicate even larger price increase.

[Hopalong]

Latest US Wheat Associates newsletter is optimistic that world wheat usage will exceed production for first time in four years thus supporting higher prices.

[errolanderson]

North American total cattle and calves rose 2 percent over the past year. 2016 backgrounding losses were even worse than for BSE. This 2017 recovery is finally pencilling fats into the black. $3 calves have turned into $2 calves in 2016. Hopefully, the next cattle feeding turn will begin to generate modest profits.

The U.S. Continues to wrestle with a meat protein glut from poultry and hogs combined.

[WiltonRanch]

Not to mention carcas weights are higher year over year. Feeders are sending heavier calves out. When we see carcas weights drop might be an indication the cycle is turning up. Makes a guy wonder about the rabble about the demand for smaller steaks. Where did that go?

[DaneG]

http://www.thebeefread.com