CAB Insider: Market Update Feb. 26, 2025
2025-02-27 16:51
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Wedoany.com Report-Feb 27, The U.S. beef cattle industry reported a slight increase in harvest last week, with 563,000 head. Cull cow processing was affected by winter weather, down by 2,000 head compared to the previous week. Spot market prices for steers and heifers remain under pressure, while live cattle futures on the Chicago Mercantile Exchange have stabilized.

The February Cattle on Feed report indicated a minor rise in cattle in feedyards, with 11.7 million head, up 99% from the same time last year. January placements were 102% of 2024 levels, influenced by a blizzard that led to a record-low number of cattle placed in feed yards that month.

Live cattle futures continue to hold steady, driven by lower beef values despite a smaller harvest and tighter supplies. Steer and heifer prices are under pressure due to firming live cattle contracts early this week. The April contract remains a $3.63/cwt discount compared to February, reflecting traders' expectations for fed cattle.

Cattle quality grades showed slight variations, with Choice and Prime acceptance rates fluctuating. The Certified Angus Beef (CAB) brand has introduced new ribeye size specifications starting March 1, targeting higher marbling and fat thickness. This update aims to enhance brand relevance and market appeal.

CAB's role in the beef supply chain is crucial, as brand standards continue to evolve through innovation. With the new REA specification, the brand seeks to address market pressures while maintaining its premium image.

In conclusion, the beef market faces a complex landscape with mixed trends in harvest, processing, and pricing. CAB's strategic updates highlight the industry's commitment to maintaining relevance and quality.

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