Feedlot Oversupply Causing Chain Speed Slow Downs
“Especially high-end cuts in supermarkets just aren't moving. And a lot of people are putting that on the economy being as rough as it is some families are having to make choices and one of them is that they're probably going to buy more chicken and pork than they are beef here. It's kind of getting to the point that there are cattle backing up and feed yards that need to be slaughtered that they just can't get slaughtered because of the backup and beef so chain speeds are slowing down at packinghouses.
Irey also anticipates more replacements coming our way being driven by more cattle coming into the US from Canada and Mexico, along with the areas of the US that have experienced drought, which is causing more cattle to be placed in the feedlots. He also notes heifer retention trends with feeder cattle.
“As high as they've been heifers. You know, the price on a heifer has ranged from $1,750 to $2,000. And ranchers have had a hard time putting that expensive of a critter back into his breeding herd without being able to get a cap out of her for two years.”
Once again Brian Irey, with Crossroads Coop.