Cattle rally squeezes packer margins, raising volatility concerns

US packer buyers closed last week actively, adding inventory at the upper end of recent price ranges, while cattle producers now look to extend the gains of the past two weeks. According to The AG Center, despite feedlot inventories tightening, record-high live weights are partially offsetting the decline in numbers, without implying an oversupply of finished cattle. At the same time, producers continue to struggle to lower breakeven levels amid high replacement costs.