Stocker and feeder cattle sold higher at auctions last week, but pressure on prices may develop as a result of the the WASDE report which projects smaller corn and soybean acres and higher grains prices.
The first hint of green grass was evident throughout much of the Midwest last week, and moisture across the High Plains was welcome with warmer weather on the way. Demand for grass cattle was high.
Cash fed cattle prices ended last week $10 per cwt. lower than last year while the beef cutout closed $16 higher than the same week a year ago. The result? Packer margins $314 per head more than last year.
With the run-up in stock prices for GameStop, AMC and others, could corn, soybeans or cattle be next? Listen to what Tommy Grisafi of Advance Trading had to say about it on U.S. Farm Report this weekend.
Cash cattle traded mostly $3 higher on the week, despite light volumes and varied interest from packers. April live cattle futures posted a key bearish reversal, but closed lower for the week.
Cattle and hog feeding margins were little changed last week, with both recording modest losses. Beef packers saw improved margins on significant gains in wholesale beef prices.
U.S. farmers are facing a changing scenario this year. From wet conditions impeding planting in 2020, to now drought concerns creeping in, one analyst thinks weather could be a major market mover in 2021.
On-feed numbers indicate that packers could be running low on committed cattle, which should force some packers back into the cash market in the coming weeks.
