Spring Stocker and Feeder Cattle Rally Continues
Demand for spring and summer grazing cattle remains high with prices reflecting good buyer competition. Agricultural Marketing Service reporters called last week’s auction prices for steers and heifers steady to $4 higher.
“Grazing calves and feedlot-ready cattle were in demand in spite of rising feed costs,” AMS said. “Nearby May corn futures closed the week near $5.80 and December new crop corn closed the week only three and a half cents shy of $5.00 after being 17 1/2 cents and 12 cents higher on the week, respectively.”
Markets for grazing-type cattle were buoyed by a strong rally in the negotiated fed cattle market, where prices saw a $3 to $5 per cwt. advance. Negotiated cash cattle traded at $120 to $122 in the South with a few up to $123, $3 to $4 higher. Cattle in the North traded mostly at $122 to $123, with a few up to $125, with dressed sales at $195 to $196. Prices were called $4 to $5 higher.
Estimated cattle slaughter was 641,000 compared to 673,000 the previous week and 112,000 more than a year ago.
Analysts note that the supply of stocker and feeder cattle outside feedyards is about 700,000 head smaller as of April 1. For calf producers, the declining supply of feeder cattle and calves will support prices at higher levels than over the past few years. Rising grain prices and higher costs of gain will entice feedyards to buy heavier incoming cattle.
Auction receipts totaled 228,200 head last week compared to 193,300 the week before, and 112,900 last year.
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