Feeder prices trend lower
Widespread uncertainty continues to shadow markets.
Wes Ishmael, BEEF Magazine
Sep 13, 2019
Few are overly confident that lows are in for Cattle futures, but the week’s rally and renewed trade optimism have many hoping Monday’s trough carved out a hard bottom.
Week to week on Friday, Feeder Cattle futures closed an average of $3.29 higher ($2.55 to $3.77 higher). That was with Corn futures closing an average of 12 cents higher through the front six contracts week to week.
Although the rally added some zest to some cash feeder prices later in the week, increased trade volume and lingering uncertainty continued to weigh heavy.
“Cattle feeders have been hammered by much lower cash fed cattle prices and now a futures complex that continues to plummet even further,” explained the AMS reporter on hand for Monday’s auction at Sioux Falls Regional in South Dakota—before the rally. “This negativity is making it very difficult to discern at what price level feeder cattle should be bought.”
Nationwide, steers and heifers sold mostly $2-$6 per cwt lower, with calves trading as much as $10 lower, according to the Agricultural Marketing Service (AMS).
Heavy Supply and Less Capacity Pressure Fed Cattle ...
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