A record amount of beef is on the way to consumers ahead of the start of summer grilling season.
Drovers editor Greg Henderson told
AgDay TV that 660,000 head of cattle were slaughtered last week, the largest of any week in five years. Why are cattle moving so fast and furious? The
disparity in
the current cash price and June live cattle prices. That wide basis has
more cattle moving to the feedyard, and packers are willing buyers. Earlier this week, John Nalivka of Sterling Marketing reported
packer profit margins are approaching $300 per head. Aggressive marketing has also led to lower dressed carcass weights at
an average of 849 lb., nearly 6% below the first week of January. Will this support prices through the summer? If demand continues to
move beef supplies and feeders continue to remain aggressive sellers,
it’s possible.
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