Feeder Cattle Higher At Auction Last Week
Lower grain prices last week helped boost prices for feeder cattle and calves at most auctions across the country. Agricultural Marketing Service reporters said grain prices will continue to be a significant factor for cattle prices going forward.
Compared to the previous week, steers and heifers sold mostly steady to $5 higher, AMS reporters said. Sales from mid-week on traded mostly $2 to $6 higher, with a few sales of mostly light calves under 550 pounds selling $8 to $10 per cwt. higher.
“On Wednesday when the WASDE Report was released corn prices fell hard the rest of the week and feeder cattle prices in most markets responded higher,” AMS said.
USDA on Wednesday lowered old crop corn ending stocks for the 2020-21 season 95 million bushels to 1.257 billion bushels coming in slightly below pre-report estimates. But new crop corn for 2021-22 ending stocks came in at 1.507 billion bushels, higher than pre-report projections sending corn prices lower.
“Weather will be the main factor for grain prices going forward as the growing season is sure to see many ups and downs as volatility will be in the cards and grain prices will be a dominating factor in purchasing feeder cattle.”
Auction receipts totaled 146,300 head last week, compared to 144,700 the previous week and 171,000 head last year.
