September 3, 2013
US cattle markets remain active in corn-producing states
US feeder cattle market remained in demand driven by weather forecasts and corn market expectations with upcoming feed supplies pushed and pulled by a bumper corn crop threatened by continued dryness.
Feeders remain in demand for the 14th consecutive week in northern states on better pasture conditions and access to good corn yields. Trade was busy at the start of last week following news of lower projected crop yields threatened by continued dryness and the potential for an early frost. Grain prices settled down as the week progressed and yearling feeder prices marched on.
According to USDA Market News last week''s trade proceeded with caution for the first time in 14 weeks. Most yearling feeder markets started the week steady to US$3 lower in the Southern Plains while Northern Markets moved US$3 to US$7 higher. On average, cattle sold last week for between US$123 and US$123.50.
Although cattle prices tend to peak in August, tight supplies as revealed by the previous Cattle on Feed report will likely prevent prices from declining too quickly moving into the fall.
Although it''s hard to determine crop yields until combines get to work, Corbitt Wall of USDA Market News said the Pro-Farmers''s annual crop tour set estimates for corn at 154.1 bushels per acre. Low pod counts set less impressive expectations for soy.
Cash cattle prices remained steady at US$123, even with the previous week with light-to-moderate trade in the Texas panhandle and active bidding in Kansas on moderate demand. Dressed sales were mostly a dollar lower, trading at US$196.
Boxed beef prices trended lower last week, but posted marginal gains. Choice boxed beef prices decreased by US$0.52, ending the week at US$195.67. Select cuts also declined last week, moving US$1.43 lower than the previous week to finish at US$182.66. The Choice-Select spread was wider last week, increasing by US$0.91 to US$13.01. Slaughter cows and bulls continue to sell steady. The USDA''s cutter cow cut-out value was down US$1.29 from a week earlier at US$166.59.