Skepticism over record-breaking crop production estimates explains why the market shrugged off the “hugely bearish” USDA Aug. 12 report, according to Jack Scoville of the Price Futures Group.
Even though Father’s Day along with low prices should boost demand this weekend, meat prices are expected to head even lower in the next few weeks, Drover’s Editor Greg Henderson told AgDay.
Between realizing crop shortfalls in South America, a weaker dollar and weather uncertainties, prices for the month of April are up 35 cents for corn to near $4 for corn and $1.10 higher in soybeans back above $10. But the benefit for grain farmers is making it more expensive for cattle feeders.
What caused last year’s cattle price collapse? Washington could have some answers after an investigation of why cattle prices fell 15.1%in the last half of 2015.