Given the significant decrease in plantings and the percentage of corn that has been planted late, corn price may continue to increase.
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Feeder cattle and calves continued their fall rally in October, gaining 3% to 5% at auctions. Prices at the beginning of November are nearly 9% higher for both calves and yearlings than the August averages.
Strong placements were expected ahead of the cattle on feed report as analyst ranges were from 3.6 to 13.1 percent above a year ago.
U.S. farmers slashed their winter wheat plantings to the lowest in more than a century as supplies of the grain ballooned to a 29-year high, the U.S. Agriculture Department said on Thursday.
Females made up 43.5% percent of cattle slaughter, the lowest share since 1972.
Beef cutout prices trended about $2.80 per cwt. higher to $256.37, and packer margins improved more than $26 per head, resulting in losses of $15 on every animal processed.
Dramatically improving margins helped beef packers take command last week while cattle feeders saw closeouts fall further in the red.