Fed, feeder cattle prices in record-high range

Fed cattle found substantial tailwinds, making new record-high prices in March 2023. Feeder prices in the first quarter of 2023 are approaching the record highs from 2015. Strong cattle prices are being supported by tighter North American supplies. Following two years of drier conditions, Canadian and U.S. cattle inventories were lower to begin 2023. Fed cattle slaughter has tightened to be below year-ago levels but remains higher than the five-year average. Despite record-high cattle prices, margins are being squeezed by feed grain prices which have eased somewhat but remain well above historical levels.