The USDA released its cattle inventory and Cattle on Feed reports last week, and early results indicate the market views both reports as bearish.
Don Roose didn’t mince words when talking to farmers gathered for the Iowa Farm Bureau’s economic summit July 20.
Despite a recent dip in prices, feeder cattle prices should be coming into a period of seasonal strength.
Corn and soybean futures dropped after the USDA issued its July supply-demand report and have bounced around on weather forecasts. Meanwhile, stored bushels have kept basis wider than normal.
Pork production continues to be high, but a strong export market is helping prices remain steady.
It’s hot. It’s dry. And those things mean more risk premium for a market that has had very little in the way of a risk premium.
This spring, U.S. farmers planted a record high 89.5 million acres of soybeans while reducing corn acres by 3 percent compared to last year to 90.9 million, according to the latest USDA Acreage Report.
It will be many months before U.S. hog numbers start to decrease.
The USDA’s June 30 Acreage and Grain Stocks reports could shift attention for a short time, but many analysts expected the markets to quickly focus again on U.S. crop development and exports.
Summer prices are softening in the feeder cattle market.