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.
While any tally of cattle waiting on shackle space is – at best – an estimate, an analysis of Cattle on Feed and slaughter data suggests estimates of 1 million cattle backlogged may be overstated by as much as 50%.
Brazilian labor prosecutors are suing meatpacker JBS SA seeking damages and better work conditions after an outbreak of the novel coronavirus at a meat plant in Ipumirim, in the southern state of Santa Catarina.
The feedlot industry will spend much of the summer working through the backlog of fed cattle but the hole from March and April feedlot placements should provide a marketing window to catch up by this fall if not before.
"A lot of folks think we should mandate with a law—a federal LAW, mind you, because those always work out so well—that more feeders sell in the cash market. But tying feeders’ hands like this isn’t the answer."