Here we go again: more market-making legislation, this time from Cory Booker, the vegan Democratic senator from New Jersey, and Ro Khanna, also a Democrat, from California. Seems like the blue coasts have a lot of interest in the packing industry.
It seems that quite a few cattle groups are starting to get excited about proposed legislation to force more cash trade on the industry. Another bill was introduced recently, the Cattle Price Discovery and Transparency Act. I’ve lost track of how many bills have been proposed regarding the cattle industry.
Cattle markets remained positive last week. The House Ag Committee recently held another hearing on current food supply chain problems and bottlenecks. They heard from the trucking industry, wholesale grocery industry, food processors and directly from the food manufacturing and farm supply industries.
You should get your holiday prime rib bought soon because they are going higher. Boxed beef markets seem to have found a new floor at $280, which is about $50 higher than last year. Markets are responding to shorter supplies of fed cattle coming to slaughter.
We desperately need a heavy, wet winter this next year in the West. A district judge has ordered the U.S. Fish and Wildlife Service (USFWS) to revise its recovery plan for the Mexican gray wolf, ruling the agency must produce a new draft within six months and a final plan no later than a year.
We have a distribution crisis, and we’ve been spoiled by companies like Amazon and online merchandising—order today and get it tomorrow, or even the same day. I think the race to be the quickest distributor has created the problem of being the consistent distributor.
The latest Cattle on Feed report was uneventful. All points were about where they were expected to be. Placements were a bit higher than expected. Therefore, futures continued to drift lower. It’s frustrating that market-ready fed cattle numbers were forecast to be lower coming into October.