Livestock prices surged higher again this week, reacting mostly to tighter supplies brought about by severe winter weather and multi-year reductions in the breeding herd. Feeder Cattle futures led the way this past week, as the March contract gained $1.22 compared to last Tuesday, while the April was up $1.95 and October gained $2.10. Tightening supplies of feeders and improved fed cattle prices both lent strength to the feeder market. Cash feeder values were mixed at early week auctions, steady to a dollar lower on some classes in Oklahoma City on Monday, but Tuesday’s sales were mostly steady to higher after two days in a row of sharply higher Feeder futures.
Live Cattle futures were also stronger, with the April contract up 35 cents for the week, while June gained 75 cents and August was up $1.35. Reduced supplies are the main factor in higher fed cattle values. Numbers of market-ready cattle are lower and carcass weights are more than 20 pounds lighter than this time last year, with the strong and frequent winter storms the main factor in those reduced weights. Boxed beef values are also up again this week, with the Choice up $1.47 compared to last Tuesday, while Select gained 51 cents. Early indications are for cash fed cattle prices to gain at least another dollar this week compared to the bulk of last week’s trade at $92.
Given the strength of both fed and feeder cattle values already, it may be interesting to watch the competition for cash feeder cattle when feedlots get dried out and want to put more yearlings back in empty pens. Hog prices are benefiting from the surge in cattle values, as some consumers switch to lower priced pork as beef prices rise. April Lean Hog futures were up three bucks for the week ended Tuesday, with May up $1.47 and June up $2.32. Cash butchers in Sioux Falls were up two bucks this week, trading at $51 on Tuesday.
Grain prices were in the doldrums, with March and May Corn futures up less than three cents, and new-crop December up just four cents. Exports are still slow and corn is abundant, although basis levels have improved in an effort to speed up the process of getting farmers to sell. The outside markets have lent some support to corn prices this week, preventing a loss for the week.
Soybean prices are also slightly higher this week, as exports remain strong, and South American harvest is slowed by wet weather. March Soybean futures gained nearly two cents in the week ended Tuesday, with the May contract up four. New-crop November Soybeans were up nearly a dozen cents this week as well.
Wheat prices were narrowly mixed this week, as abundant world supplies and good winter wheat weather combined to keep a lid on wheat values. In Chicago, the March futures contract was off a fraction of a cent for the week, while the May contract gained more than a penny. In Kansas City, the March contract was up nearly a cent, while the May and new-crop July contracts lost about a cent compared to last Tuesday.
Next Wednesday, the 10th, USDA releases the monthly Crop Production and Supply and Demand reports. Normally this time of year, more attention would be focused on the upcoming Planting Intentions report, but not this March. USDA has resurveyed producers in several states with significant delayed harvest because of weather and field conditions and the results of that survey will be reflected in both the Crop Production and S & D reports. Weather will continue to be the main factor in livestock prices for at least a couple of weeks, although any big surprises in the crop reports could sway prices as well.
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Livestock prices surged higher again this week, reacting mostly to tighter supplies brought about by severe winter weather and multi-year reductions in the breeding herd. Feeder Cattle futures led the way this past week, as the March contract gained $1.22 compared to last Tuesday, while the April was up $1.95 and October gained $2.10. Tightening supplies of feeders and improved fed cattle prices both lent strength to the feeder market. Cash feeder values were mixed at early week auctions, steady to a dollar lower on some classes in Oklahoma City on Monday, but Tuesday’s sales were mostly steady to higher after two days in a row of sharply higher Feeder futures.
Live Cattle futures were also stronger, with the April contract up 35 cents for the week, while June gained 75 cents and August was up $1.35. Reduced supplies are the main factor in higher fed cattle values. Numbers of market-ready cattle are lower and carcass weights are more than 20 pounds lighter than this time last year, with the strong and frequent winter storms the main factor in those reduced weights. Boxed beef values are also up again this week, with the Choice up $1.47 compared to last Tuesday, while Select gained 51 cents. Early indications are for cash fed cattle prices to gain at least another dollar this week compared to the bulk of last week’s trade at $92.
Given the strength of both fed and feeder cattle values already, it may be interesting to watch the competition for cash feeder cattle when feedlots get dried out and want to put more yearlings back in empty pens. Hog prices are benefiting from the surge in cattle values, as some consumers switch to lower priced pork as beef prices rise. April Lean Hog futures were up three bucks for the week ended Tuesday, with May up $1.47 and June up $2.32. Cash butchers in Sioux Falls were up two bucks this week, trading at $51 on Tuesday.
Grain prices were in the doldrums, with March and May Corn futures up less than three cents, and new-crop December up just four cents. Exports are still slow and corn is abundant, although basis levels have improved in an effort to speed up the process of getting farmers to sell. The outside markets have lent some support to corn prices this week, preventing a loss for the week.
Soybean prices are also slightly higher this week, as exports remain strong, and South American harvest is slowed by wet weather. March Soybean futures gained nearly two cents in the week ended Tuesday, with the May contract up four. New-crop November Soybeans were up nearly a dozen cents this week as well.
Wheat prices were narrowly mixed this week, as abundant world supplies and good winter wheat weather combined to keep a lid on wheat values. In Chicago, the March futures contract was off a fraction of a cent for the week, while the May contract gained more than a penny. In Kansas City, the March contract was up nearly a cent, while the May and new-crop July contracts lost about a cent compared to last Tuesday.
Next Wednesday, the 10th, USDA releases the monthly Crop Production and Supply and Demand reports. Normally this time of year, more attention would be focused on the upcoming Planting Intentions report, but not this March. USDA has resurveyed producers in several states with significant delayed harvest because of weather and field conditions and the results of that survey will be reflected in both the Crop Production and S & D reports. Weather will continue to be the main factor in livestock prices for at least a couple of weeks, although any big surprises in the crop reports could sway prices as well.
