Written Commentary
LIVESTOCK AM OUTLOOK
Packers want cattle and are paying more this week. If a feedlot has high grading cattle, packers will pay higher for them, but they are discounting lower grade cattle. It is February far from when consumers are in the spring and summer grilling season but beef buyers are securing loads now. It wasn’t a beef daily beef movement Thursday but larger than previous weeks movement. Choice/Select composite spread widened but remains narrow.
Even though pork is cheaper than beef, the margin that a retailer can mark up on pork compared to the mark up on beef will begin to limit the amount of pork a retailer will buy. If they can get a better margin on beef, they will push beef. Retailers may not be selling steaks and expensive high end beef roasts, but they are selling the middle meats and low end beef.
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