The current cattle market situation creates significant disparities between the current supply and demand situation and expectations for coming supply and demand conditions.
Feeder cattle prices are called a “runaway” this week. Declining corn prices has prompted cattle feeders to bid up yearling cattle prices to dizzying heights, which is great news if you’re a seller.
COVID-19 has temporarily placed a restriction on the number of cattle that can be harvested in a given week. That scenario is usually a recipe for lower prices, but this week’s extremely light fed trade was steady.