Livestock Economics

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Livestock Economics

BUDGETS: cow calf, backgrounding, summer grazing

LMIC: Analysis and Comments, In the Cattle Market, Livestock Monitor

MARKET REPORTS: area market reports

PRESENTATIONS: meeting presentations

LEASE PUBLICATIONS - farm and ranch

Chart of the Month

May21 Chart

Prices for calves and feeder cattle have declined in the last few weeks due to increasing corn prices and drought conditions.  But they are being supported by lower supplies. The 2020 U.S. calf crop was down one percent.  And the feeder cattle supply outside of feedlots in April was estimated to be down about 700,000 head from last year. Price support for heavier feeder cattle is also coming from live cattle futures prices for the last half of 2021 and first half of 2022, which are the highest in several years.

Feeder cattle prices are expected to be volatile throughout the summer with changing weather conditions, corn prices, and fed cattle prices. Corn planting progress, final planted acres, crop development, and expected yield information, along with a dynamic corn export market will likely cause significant corn price volatility. The rule of thumb “change corn price .10/bu. change calf prices $1/cwt. in the opposite direction” is timely. Drought forced sales of feeder cattle could also impact calf prices.

 

 

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