US packers face margin pressure as cash prices rise

US beef packers are struggling to establish, much less maintain, operating margins, said The AG Center, and added that “this will assure lower slaughter volumes and smaller cash purchases”. Should weekly slaughter volumes remain in the 540,000–550,000 head range, boxed beef should improve heading into the holiday period. Show lists will remain tight, especially in the South, with steadily declining feedyard occupancy.