Key Takeaways:
Expected returns to production for U.S. cow-calf producers have shifted lower from prior forecasts as cattle values fall and feed costs rise. Producer revenues are forecast 4–5 percent below our July outlook and will be 3 percent below 2025 levels. Costs are quickly becoming a bigger concern relative to revenues as cost reductions presently lag the declines in cow-calf operation revenue. Despite the deterioration in expected margins, profits will still likely be just shy of 2025’s record-breaking levels and support strong financial conditions for the industry. That profitability should help boost beef heifer retention, which WPI now forecasts at 4.9 million head, up 4 percent from last year.
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What You Need to Know Today: The U.S. dollar continued to strengthen Thursday as persistent inflation reinforced expectations for additional Federal Reserve interest rate hikes. Higher Treasury yields have helped support the dollar, potentially reducing the competitiveness of U.S. agricultural...
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