Feeder-cattle prices set record highs last month while cash fed-cattle prices approached record highs.
Feedyard profits remained above $100 per head, providing the beef industry with a strong economic outlook. Strong export demand remains a major contributor to beef’s price rally and supplies remain manageable. Packers are running in the black, which supports aggressive bidding on finished cattle. The U.S. economy is showing signs of strengthening which will help domestic demand. The biggest concern for cattle producers remains the volatility in the grain markets and rising production costs due to rising oil prices. The steer-corn ratio is at 16.4, the lowest since March 2008 when it was 17.28. It declined through June that year to a low of 14.6.