The Cold Storage report was called bearish for all meats, though it was especially damning for beef. At 492.12 million pounds of beef in all warehouses as of Feb. 28, the stores of beef were up 20 percent compared to the same time in 2014.
The on-feed population as of Mar. 1 in feedlots with a 1,000 head capacity or higher stood at 10.66 million, down 0.5 percent from Mar. 1, 2014 and the lowest Mar. 1 population since 2003. This level was lower but in keeping with the pre-report industry estimates of a 0.
The situation in California is dire. That hardly needs to be reiterated as reports of the next-to-nonexistent snowpack saturate the mainstream media as well as industry outlets. But the questions of “why?” and “when will it stop?” get less attention.
Last Monday, Environmental Protection Agency (EPA) Administrator Gina McCarthy addressed the National Farmers Union (NFU) at their annual conference in Kansas. In her speech, she offered some insight into the new and improved Waters of the U.S. (WOTUS) rule.
Last week the futures got all the attention in the cattle and beef market family. And despite the spectacular displays there, the cash fed trade was left to languish. Or perhaps that was the result of cash fed cattle buyers holding out until the Cattle on Feed report, which came out last Friday.
The situation in California is dire. That hardly needs to be reiterated as reports of the next-to-nonexistent snowpack saturate the mainstream media as well as industry outlets. But the questions of “why?” and “when will it stop?” get less attention..
The cash live trade held off to later in the week last week as packers held out hope for the possibility of lower fed cattle prices. By Thursday afternoon, they were to be disappointed. Over 10,400 head of cattle were confirmed sold at $162.50 live and $258- 260 dressed, steady to slightly higher for both live and dressed compared to the prior week.
Technology is the way of the future, right? Some embrace technology with wild abandon, being early adopters of every new shiny thing, while others shun the new to represent the other extreme. But in the real world, technology is only as valuable as its ability to produce results.
“Sharply higher beef prices in North America coupled with a very strong U.S. dollar have significantly distorted relative prices in the U.S. and Canada. High beef prices in the U.S. have limited U.S. beef exports to Canada and as a result Canadian consumers have had to rely more on domestic production to fill needs.
Almost all facets of the beef projections were down in the most recent report. Production estimates were revised downwards to the tune of 160 million pounds at 24.13 billion pounds. This alteration was due to slow first quarter fed cattle slaughter.