2023 started with a lot optimism for cattle market costs and the primary few months have lived as much as expectations. Cattle costs have rallied sharply because the first of the yr. Costs for 500-600 pound steers are 10 to fifteen % greater in Mississippi, Arkansas, and Kentucky than they have been throughout the first week of January. Within the Southern Plains (graph beneath), five-weight steers averaged near $240 per CWT final week. In comparison with a yr in the past, calf and feeder cattle costs are up 15 to 25 %. These are costs not seen since 2014-2015.
Cattle and beef provides have tightened and can proceed to take action all through 2023 which is anticipated to supply additional assist for cattle costs. Decrease fed cattle slaughter totals and dressed weights imply beef manufacturing is anticipated to decline by 5 % or extra in 2023 in comparison with 2022. Stay cattle costs have additionally rallied and averaged $165 final week within the 5-market space. CME Stay Cattle Futures costs are round $160 or greater for the 2023 contracts and are above $170 for the early 2024 contracts.
Wanting forward, futures contract costs inform the story of continued optimism. All 2022 CME Feeder Cattle contracts are above $190 and the late summer time/early fall contracts are close to $220 per CWT (graph beneath).  For producers planning to promote later this yr, there could also be fascinating worth threat administration alternatives given the present robust expectations for calf costs this summer time. There are a number of selections to contemplate and you’ll click on right here to learn Kenny’s February 2022 e-newsletter about threat administration issues.
