A USDA livestock economist suggests the profit balance is shifting in the beef sector.
Shayle Shagam says cow/calf operators, feedlots, and packers have been mostly in the black so far this year.
But with expectations of more cattle coming out of feedlots and associated price declines, the margin environment is changing.
“Packer margins are actually counter-seasonally relatively strong. Normally this would be a period of time when the demand for wholesale choice cuts of beef tends to not be as strong just ahead of the period when retailers begin to buy for grilling season.”
He says feedlot margins remain healthy.
Continue reading Profit balance shifting in beef sector at Brownfield Ag News.
