# Price Margins Don’t Add Up in Favor of Producers | Calf News

> Oklahoma State economist Derrell Peel argues that proposed government mandates on negotiated cash cattle trade would not lift producer prices and could add transaction costs. He notes packer margins have been far above feeder returns, with cutout values above $300/cwt while fed cattle struggled near $120/cwt. The gap is attributed to the herd liquidation and plant closures.

- Date: 2021-08-06 · published 2021-08-06T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/45711-price-margins-don-t-add-up-in-favor-of-producers-calf-news
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Mandates could raise costs and possibly lower cattle prices, while the packer-producer margin gap keeps pressure on feeder returns. Price outcomes depend on whether policy changes reach the market.

## Read by commodity

- FCATTLE: neutral
- LCATTLE: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2022-07-12 | [Sask. cattle producers call for meat pricing investigation, transparency](https://feedsoft.ai/events/40439-sask-cattle-producers-call-for-meat-pricing-investigation-transparency.md) | -1.0% | -0.4% |
| LCATTLE | 2021-06-28 | [Cattle Producers and Lawmakers Delve Into Problems With Markets and Packers](https://feedsoft.ai/events/46712-cattle-producers-and-lawmakers-delve-into-problems-with-markets-and-packers.md) | +0.7% | -0.5% |
| LCATTLE | 2024-09-20 | [CME Reduces Price Limits In Cattle Contracts \| Industry News \| feedlotmagazine.com](https://feedsoft.ai/events/28436-cme-reduces-price-limits-in-cattle-contracts-industry-news-feedlotmagazine-com.md) | +1.7% | +3.2% |
| LCATTLE | 2021-03-25 | [Cattle prices investigated - AG INFORMATION NETWORK OF THE WEST](https://feedsoft.ai/events/48256-cattle-prices-investigated-ag-information-network-of-the-west.md) | +1.4% | +3.0% |
| LCATTLE | 2023-12-19 | [Weekly Address: Free Trade Distorts Domestic Cattle Prices - R-CALF USA](https://feedsoft.ai/events/32622-weekly-address-free-trade-distorts-domestic-cattle-prices-r-calf-usa.md) | +0.9% | +2.2% |
| FCATTLE | 2022-07-12 | [Sask. cattle producers call for meat pricing investigation, transparency](https://feedsoft.ai/events/40439-sask-cattle-producers-call-for-meat-pricing-investigation-transparency.md) | +1.0% | +3.7% |
| FCATTLE | 2021-06-28 | [Cattle Producers and Lawmakers Delve Into Problems With Markets and Packers](https://feedsoft.ai/events/46712-cattle-producers-and-lawmakers-delve-into-problems-with-markets-and-packers.md) | -1.6% | +1.7% |
| FCATTLE | 2024-09-20 | [CME Reduces Price Limits In Cattle Contracts \| Industry News \| feedlotmagazine.com](https://feedsoft.ai/events/28436-cme-reduces-price-limits-in-cattle-contracts-industry-news-feedlotmagazine-com.md) | +0.1% | +0.6% |

## Sources

- calfnews.net: https://calfnews.net/featured/price-margins-dont-add-up-in-favor-of-producers/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.