Beef iis still running its own plot line. Prices remain elevated, continuing to pressure grocery and foodservice supply chains.
That includes beef packers. The chart above shows a simple packer-margin model comparing beef prices to cattle costs. The lower the bar, the tougher the year—and this season looks like the worst margin year in a decade. One side effect: record-high cattle weights as packers look for efficiency wherever they can. Think of it as the commodity-market version of bulking up for the playoffs.
If you’re navigating these erratic markets—especially beef—we can help. Datum FS provides data-driven research, forecasting, and physical sourcing and hedging tools to manage risk. For example, the Trump Administration’s recent reduction in beef import tariffs could create opportunities in your supply chain. Reach out at the links above.
