Preliminary March 2021 federally inspected slaughter volume was up by 75,000 head from a year ago, totaling 2.95 million head, due to one extra slaughter day relative to March 2020.

The severe winter event in mid-February that dipped as far south as Texas disrupted packing plant operations, further-processing facilities and delivery of cattle to plants.

After languishing for weeks at about $114 per hundredweight (cwt), the fed cattle market has sprung to life. Fed cattle prices hit $123-$124 in more Northern regions and closed the week at $121 in the Southern Plains.

Last year, several pieces of legislation were introduced in both the U.S. House of Representatives and Congress whose principal aim was to increase the level of negotiated cash trade.

Randy Blach, CEO of CattleFax, shared an optimistic industry outlook with producers during the National Cattlemen’s Association 2021 Winter Reboot virtual event, held on Feb. 24.

In 2020, the U.S. exported $7.6 billion in beef and variety meat products (down 6% from 2019); variety meat exports to all partners accounted for 11.8% of that value, down from 12.4% in 2019.

For the final quarter of 2020, beef production was lowered 80 million pounds on fewer-than-expected cattle slaughtered in December. This decline was particularly driven by fewer steers and heifers in the slaughter mix. As a result, 2020 beef production is forecast at 27.2 billion pounds, almost unchanged from 2019 production levels.

The latest Cattle on Feed report was released Jan. 22. Included in this report were placements and marketings for December 2020 and the on-feed total for Jan. 1, 2021.

The cattle industry, like everyone else, is more than ready to move past 2020 and into a new year. While the industry will start the year with a new slate, there are numerous factors in place that will shape markets for, at least, the first few months of 2021. Cattle markets face a mix of opportunities and challenges as the new year begins.

On Dec. 18, the USDA Cattle on Feed report was released. The trade expectations told a consistent story of lower placements and marketings from a year ago.