CAB Insider: Cattle, Grain and Carcass Price Signals Mixed

 

By Paul Dykstra, Drovers  

April 28, 2021

 

Cash fed cattle prices were lower $1 to $2/cwt. last week, arriving at an average just below $121/cwt. Futures weakness brought prices lower, despite the severe upward trajectory of carcass cutout values…

 

Cattle, Grain and Carcass Price Signals Mixed

 

The beef industry finds itself in another odd position as market values are adjusting swiftly. Feed grains continue to react to global supply-and-demand dynamics with a bias toward even higher corn and soybean futures prices. Spot market corn prices are well over $6/cwt., invalidating recent cost-of-gain projections and at least temporarily pulling down feeder values.

    

In the beef output discussion, cutout values have rocketed to nearly $300/cwt. for the CAB cutout and $282/cwt. for Choice. Beef end-users have been hungry for product, weathering several weeks of disappointing production volume and tighter spot market supplies. The surge in restaurant reopening business has fueled buying activity amid these smaller-than-ideal production weeks.

    

In the meantime, the fed cattle market has been subject to a push-pull effect from market signals...

 

End To Fed Cattle Yearling Supply ...

 

more, including table, charts [3]  

https://www.drovers.com/news/beef-production/cab-insider-cattle-grain-and-carcass-price-signals-mixed