December 2021 Cattle Projections
December is coming to an end quickly and the start of a new year has many feedlot operators looking for some opportunities in the feed pen despite continued increases in corn prices.
This months projections reflect cattle purchases and sales as more of the holiday feeder sales wrap up. Seasonal feeders have since filled their pens and more commercial buying will continue into the new year. With the continued increase in cow slaughter, calf prices may continue to remain higher, as the live cattle futures stay higher into the new year.
Some local or regional feed prices have found some relief in fire sales of distillers and gluten trying to replace as much energy as possible so as to keep $6.00/bu corn out or limited in the rations. These also help offset need for urea as that has becoming an expense in rations as well. For the first time hot carcass weights are down (1 lb), hopefully continuing to indicate that cattle sales are current and producers are not willing to have to make cattle heavier while waiting for the packer to make shackle space. Asking live cattle prices have been strong at the end of the year perhaps solidifying some shortcomings in the packer supply.
As always there are some concerns as we continue to work through a pandemic with shortcomings in truckers and chain workers which could cause a backup in production should an outbreak occur. The silver lining is that more families are cooking at home and beef is a priority for many.
As we look to the new year, may you find peace in the lessons you have learned, thankfulness in the time with family and friends, and joy in the anticipation of a new year.
Happy New Year from your Form-A-Feed Beef Team.