Central Fl Cracker
Well-known member
Markets
Supply Pushing Prices
"Demand for lightweight calves and yearlings are about as good as they've been all spring. Feeder numbers are growing tighter each week and demand continues to increase with virtually no bargains being found at the auction rings as many individuals, small lots and new crop calves are selling at large and load lot levels," Ag Marketing Service analysts said Friday. "Feeder-cattle futures have been on the rise and are within $2-$3 of all-time highs set last September. With the premium for deferred live cattle and corn futures lower this week, we're seeing feeder cattle buyers in intense bidding to own numbers of feeder cattle and ignoring high input cost of corn and transportation."
All told, last week's lighter auction receipts due to the Memorial Day Holiday saw calves and yearlings bringing steady money to $2 higher.
Current support for calves and feeders, via the strength of the deferred fed-cattle futures seems to revolve at least in part around tightening supplies, decent consumer demand, and the expectation that higher input costs will ultimately be passed along to consumers through higher beef prices. A key wild card to such bullishness is corn, of course.
Even with strong calf prices, escalating input costs are sending cow-calf producers toward losses this year – the first time in a decade, according to Livestock Marketing Information Center (LMIC) researchers.
Specifically, LMIC estimates net returns for 2008 at -$20, based upon estimates of typical Southern Plains annual cow-calf returns over cash costs. In 2007, LMIC estimated returns were +$34/cow; the record high +$150/cow occurred in 2004.
"Overall, U.S. cow-calf producers will see little if any near-term incentive to hold back extra heifers for breeding-herd rebuilding," the LMIC analysts say. "In fact, many producers will need to sell more heifers than normal to cover their out-of-pocket costs."
The summary below reflects the week ended May 30 for Medium and Large 1 – 500- to 550-lb., 600- to 650-lb. (calves), and 700- to 750-lb. feeder heifers and steers (unless otherwise noted). The list is arranged in descending order by auction volume and represents sales reported in the weekly USDA National Feeder and Stocker Cattle Summary:
Supply Pushing Prices
"Demand for lightweight calves and yearlings are about as good as they've been all spring. Feeder numbers are growing tighter each week and demand continues to increase with virtually no bargains being found at the auction rings as many individuals, small lots and new crop calves are selling at large and load lot levels," Ag Marketing Service analysts said Friday. "Feeder-cattle futures have been on the rise and are within $2-$3 of all-time highs set last September. With the premium for deferred live cattle and corn futures lower this week, we're seeing feeder cattle buyers in intense bidding to own numbers of feeder cattle and ignoring high input cost of corn and transportation."
All told, last week's lighter auction receipts due to the Memorial Day Holiday saw calves and yearlings bringing steady money to $2 higher.
Current support for calves and feeders, via the strength of the deferred fed-cattle futures seems to revolve at least in part around tightening supplies, decent consumer demand, and the expectation that higher input costs will ultimately be passed along to consumers through higher beef prices. A key wild card to such bullishness is corn, of course.
Even with strong calf prices, escalating input costs are sending cow-calf producers toward losses this year – the first time in a decade, according to Livestock Marketing Information Center (LMIC) researchers.
Specifically, LMIC estimates net returns for 2008 at -$20, based upon estimates of typical Southern Plains annual cow-calf returns over cash costs. In 2007, LMIC estimated returns were +$34/cow; the record high +$150/cow occurred in 2004.
"Overall, U.S. cow-calf producers will see little if any near-term incentive to hold back extra heifers for breeding-herd rebuilding," the LMIC analysts say. "In fact, many producers will need to sell more heifers than normal to cover their out-of-pocket costs."
The summary below reflects the week ended May 30 for Medium and Large 1 – 500- to 550-lb., 600- to 650-lb. (calves), and 700- to 750-lb. feeder heifers and steers (unless otherwise noted). The list is arranged in descending order by auction volume and represents sales reported in the weekly USDA National Feeder and Stocker Cattle Summary:
