Cattle cycles are measured from low point to low point, which means that the current cycle started in 2014, peaked in 2019, and was ongoing in 2023.
Thus, a key question is: will record cattle prices (so far, and projected by USDA) in 2024 trigger an expansion of the cattle herd and start a new cattle cycle? Looking back at 2023, cattle prices hit records but feed, forage and financial, and fertilizer costs were all higher than typical levels and the beef herd continued its contraction as producer margins did not keep pace with cattle prices. As of 1 January 2024, the U.S. cattle herd dropped to 87.2 million head, the lowest since 1951. Reductions were seen at virtually every level of the cattle supply compared to the beginn...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
