Cargill Announces Lockney, Texas Cattle Feedlot Closure

By Amanda Brodhagen, Farms.com

Cargill Inc. said that it will close its Lockney, Texas, cattle feedlot operation in summer 2014 due to tight cattle supplies and high feed costs.

Recently, Cargill announced the closure of its Plainview, Texas beef processing plant in February highlighting concerns of shrinking cattle supplies and increasing input costs such as feed. The Lockney feedlot has a capacity of 62,000 head and runs through 120,000 cattle annually. Cargill has two other feedlots in Texas located in Dalhart and Bovina.

No other plans to close additional Cargill beef facilities in Texas are planned. Persistent drought has shrunk the U.S. cattle supply to its smallest in 61 years.  The feedlot has 45 employees and Cargill said they will be provided with the opportunity to relocate to fill other positions in the region. The exact date of the feedlot closure is to be determined.
 

Video: 90-Day Pause & Lower U.S. Tariffs with China has avoided the “Black Hole.”

A 90-day tariff pause with China, cutting rates from 145% to 30%, has renewed investor confidence in Trump’s trade agenda. U.S. deals in the Middle East, including NVDA and AMD chip sales, added to the optimism. Soy oil futures rose on biofuel hopes but turned volatile amid rumors of lower RVO targets, dragging down soybean and canola markets. A potential U.S.-Iran deal weighed on crude, while improved weather in the Western Corn Belt is easing drought fears. The U.S. also halted Mexican cattle imports again due to screwworm concerns. Funds are now short corn and adding to long soybean positions after a bullish USDA report.