Higher fed cattle sales and a rising stock market helped pull cattle prices higher this week. April Live Cattle futures were up $2.35 for the week ended Tuesday, with June up $2.05 and August up $2.22. Late Friday, feedlots finally managed to sell some finished cattle at $85, up $1-2 compared to last week. Boxed beef cutouts were higher this week as well, with Choice up $2.73 and Select up 19 cents for the week. The spread between Choice and Select is now back in favor of Choice, but only by about a dollar. Tightening numbers of market-ready fed cattle have forced packers to pay up for cattle the last couple of weeks, and that situation could hold for a few more weeks, before heavier supplies of summer cattle come to market.
Feeder Cattle values also moved up this week, as improved fed cattle markets caused feedlot buyers to stretch prices to keep cattle in their pens. Early week auctions were called mostly $3-5 better for stocker and feeder cattle. April futures were up $3.05 compared to last Tuesday, with the May up $2.87 and October gained $2.30.
Hog prices were mixed this week, as April Lean Hog futures lost $1.17 for the week ended Tuesday, while the May contract gained the same amount. Cash butchers in Sioux Falls were off a couple dollars this week, trading at $39 on Tuesday and the three-area lean carcass value was off 33 cents for the week.
Grain prices were also mixed this week, with corn prices mostly lower, while soybeans and wheat traded higher. Bearish levels of old-crop corn supplies are one of the major factors affecting the corn market. Although export inspections were strong this past week, and cold, wet conditions kept farmers out of the field in many areas, the heavy supplies of corn caused the May futures contract to lose almost nine cents for the week, with the July contract down more than eight cents and new-crop December off more than nine.
Soybean prices were sharply higher for the week, as short supplies met good demand for both crush and export. May Soybean futures gained more than 37 cents for the week ended Tuesday, with July up the same amount. The inverted old-crop market is willing to pay more for soybeans now than it will pay for delivery in a few weeks, indicating a severe shortage of beans. New-crop prices continue to climb as well, though not at such a rapid pace as old-crop. November Soybean futures were up more than 16 cents for the week. The rise of soybean values and the drop in corn bids could be persuading some producers to alter their mix of corn and soybeans in their planting plans for this spring.
Wheat prices bucked the bearish supply situation and finished the week ended Tuesday with higher prices. In Chicago, both May and July futures contracts gained about seven cents. In Kansas City, the May contract was up more than 17 cents for the week, with new-crop July up more than 16 and September up more than 15 cents. Some concern about low temperatures in Oklahoma and Kansas over the weekend causing damage to wheat coming out of dormancy helped push prices higher.
This Thursday, April 9, USDA released the monthly Crop Production and Supply & Demand reports. Those reports as well as weather in both the Corn Belt and winter wheat country will likely dominate grain trade for the coming week, while supplies of market-ready hogs and cattle will likely have the greatest influence in the livestock markets.
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Higher fed cattle sales and a rising stock market helped pull cattle prices higher this week. April Live Cattle futures were up $2.35 for the week ended Tuesday, with June up $2.05 and August up $2.22. Late Friday, feedlots finally managed to sell some finished cattle at $85, up $1-2 compared to last week. Boxed beef cutouts were higher this week as well, with Choice up $2.73 and Select up 19 cents for the week. The spread between Choice and Select is now back in favor of Choice, but only by about a dollar. Tightening numbers of market-ready fed cattle have forced packers to pay up for cattle the last couple of weeks, and that situation could hold for a few more weeks, before heavier supplies of summer cattle come to market.
Feeder Cattle values also moved up this week, as improved fed cattle markets caused feedlot buyers to stretch prices to keep cattle in their pens. Early week auctions were called mostly $3-5 better for stocker and feeder cattle. April futures were up $3.05 compared to last Tuesday, with the May up $2.87 and October gained $2.30.
Hog prices were mixed this week, as April Lean Hog futures lost $1.17 for the week ended Tuesday, while the May contract gained the same amount. Cash butchers in Sioux Falls were off a couple dollars this week, trading at $39 on Tuesday and the three-area lean carcass value was off 33 cents for the week.
Grain prices were also mixed this week, with corn prices mostly lower, while soybeans and wheat traded higher. Bearish levels of old-crop corn supplies are one of the major factors affecting the corn market. Although export inspections were strong this past week, and cold, wet conditions kept farmers out of the field in many areas, the heavy supplies of corn caused the May futures contract to lose almost nine cents for the week, with the July contract down more than eight cents and new-crop December off more than nine.
Soybean prices were sharply higher for the week, as short supplies met good demand for both crush and export. May Soybean futures gained more than 37 cents for the week ended Tuesday, with July up the same amount. The inverted old-crop market is willing to pay more for soybeans now than it will pay for delivery in a few weeks, indicating a severe shortage of beans. New-crop prices continue to climb as well, though not at such a rapid pace as old-crop. November Soybean futures were up more than 16 cents for the week. The rise of soybean values and the drop in corn bids could be persuading some producers to alter their mix of corn and soybeans in their planting plans for this spring.
Wheat prices bucked the bearish supply situation and finished the week ended Tuesday with higher prices. In Chicago, both May and July futures contracts gained about seven cents. In Kansas City, the May contract was up more than 17 cents for the week, with new-crop July up more than 16 and September up more than 15 cents. Some concern about low temperatures in Oklahoma and Kansas over the weekend causing damage to wheat coming out of dormancy helped push prices higher.
This Thursday, April 9, USDA released the monthly Crop Production and Supply & Demand reports. Those reports as well as weather in both the Corn Belt and winter wheat country will likely dominate grain trade for the coming week, while supplies of market-ready hogs and cattle will likely have the greatest influence in the livestock markets.
