Cash prices charged higher in feedyard country this week, leaving CME futures in the dust. Feeder cattle recovered most of the previous week's losses.
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.
The rally continues for feeder cattle prices as new all-time highs were posted last week.
Fed cattle decline $7 to $8, feeders off $3 to $10 per cwt.
Fed cattle were called steady to $1 higher, though trade was not fully established late Friday.
Cash fed cattle traded at $1 to $2 per cwt higher this week, while feeder cattle sold $4 to $5 lower.