Market Watch

After a couple weeks of higher holiday trade, fed cattle prices settled back last week. The 5-Area slaughter steer price averaged $105.46/cwt on a live weight basis, $0.82/cwt lower than the previous week. Dressed prices were down about $1/cwt as well. Choice boxed beef gained nearly $4/cwt last week to average $165.81/cwt. Feeder cattle volume picked up significantly in the first full week of the year. While price comparisons to the previous week weren’t available in several markets, generally higher prices were noted. The price for yearlings in Nebraska averaged almost $3/cwt higher, while 500-600 lb calves were more than $10/cwt higher. Through Thursday of last week, corn prices were $0.14/bu lower, basis Omaha, NE. Prices for DDGS and WDGS were up another $2-4/ton last week in Nebraska. Source: Darrell R. Mark, Department of Agricultural Economics, University of Nebraska–Lincoln Farm Supply Beef Animal Husbandry Books Farm Magazines Beef Cattle: Keeping a Small-Scale Herd fo...

Over the next three months, the prices of corn and soybeans have two major objectives. First, prices must allocate remaining old crop supplies to maintain at least pipeline stocks by the end of the current marketing year. Second, prices must direct spring planting decisions, according to Darrel Good , a University of Illinois agricultural economist. For soybeans, the USDA now projects that the combined total of domestic crush and exports during the current marketing year will reach 3.245 billion bushels. That is only 8 million bushels, or 0.25 percent, less than the total of last year. At the projected level of use, year-ending stocks would total only 140 million bushels, or 4.2 percent of total use that includes seed, feed, and residual uses. Year-ending stocks cannot be reduced much below 140 million bushels and still maintain pipeline supplies so total use cannot exceed current projections by a substantial amount. During the first quarter of the current marketing year, soybean crush...

After a couple weeks of higher holiday trade, fed cattle prices settled back last week. The 5-Area slaughter steer price averaged $105.46/cwt on a live weight basis, $0.82/cwt lower than the previous week. Dressed prices were down about $1/cwt as well. Choice boxed beef gained nearly $4/cwt last week to average $165.81/cwt. Feeder cattle volume picked up significantly in the first full week of the year. While price comparisons to the previous week weren’t available in several markets, generally higher prices were noted. The price for yearlings in Nebraska averaged almost $3/cwt higher, while 500-600 lb calves were more than $10/cwt higher. Through Thursday of last week, corn prices were $0.14/bu lower, basis Omaha, NE. Source: Darrell R. Mark, Ph.D., Department of Agricultural Economics, University of Nebraska–Lincoln Farm Supply Beef Animal Husbandry Books Farm Magazines Artwork: Winter Save by David Stoecklein

World coarse grain ending stocks in 2010/11 are projected to decline 18% from the levels of the previous marketing year. World grain prices are likely to continue to be supported in 2010/11 by a combination of supply-demand factors, including… Continued growth in World usage combined with at least moderately tighter ending stocks-to-use in 2010/11 for coarse grains, wheat and oilseeds Anticipation of strong competition for U.S. crop acreage in the spring of 2011 between corn, soybeans and other crops· Tightening World supplies of food quality wheat following 2010 harvest problems in the Black Sea region, eastern Australia and Canada – with subsequent competition to purchase remaining food quality wheat supplies from the United States and elsewhere for the remainder of 2010/11· Source: Kansas State University Department of Agricultural Economics Farm Supply Farm and Garden Books Farm Magazines Artwork: Back Road, Grain Field

Last week, February 2011 Live Cattle futures rallied more than $3/cwt, led by fund buying in the middle of the week. On Wednesday, nearby futures gained $1.75/cwt, which helped spurred sharply higher cash trade in the middle of the week. Active trade began on Wednesday at $163-164/cwt (dressed) or $103/cwt (live) in Nebraska. Trade in the Southern Plains also developed on Wednesday, with Kansas sales averaging $102-103/cwt, and Texas $103-104/cwt. Despite active trade volume on Wednesday, prices continued higher on Thursday. For the week, live sales in the 5-area market average $102.51/cwt, up $2.83 from the previous week. Dressed prices averaged $4.51/cwt higher at $163.68/cwt. Choice boxed beef averaged $3.33/cwt lower last week and the spread between the Choice and Select cutouts decreased $3.52/cwt. In a holiday-shortened week for feeder cattle sales, stronger undertones were noted where sales were reported. In Nebraska, steer calf prices advanced more than $7/cwt last week, ...

Corn prices continue to be supported by expectations that the USDA will reduce the forecast size of the 2010 U.S. crop and by a rapid pace of ethanol production. The rate of exports and export sales has been somewhat disappointing, according to University of Illinois agricultural economist Darrel Good. "Reported expectations for the Nov. 9 USDA Crop Pro duction report are for a slightly lower yield and production forecast, with the average yield guess reported at 154.4 bushels. The October forecast was 155.8 bushels. A smaller production forecast without any change in the consumption forecasts would further reduce the expectations for the size of year-ending stocks." A 114-million-bushel reduction in the forecast of crop size, as implied by a yield of 154.4 bushels, would reduce the projection of year-ending stocks to 788 million bushels or 5.8 percent of projected consumption. Ethanol production during the first nine weeks of the 2010-11 corn marketing year averaged 36.344 m...

Last week, cattle feeders held out for higher money and, rather unexpectedly, got it on a relatively light volume of cattle. The futures market was apparently caught a little off guard by the roughly $1.50 higher cash cattle prices, and nearby Live Cattle futures raced to catch up, adding over $2 in Friday’s trading. Higher fed cattle prices were supported by stronger wholesale beef prices. The Choice cutout added almost $2 over the course of last week, ending up at $154.68 on Friday. Feeder cattle futures also gained back some ground on Friday as the corn market took a breather from its recent rally. Cash calf markets were hit pretty hard last week, though, with prices (especially on stocker cattle) dropping in response to the prior week’s corn market shock. At Oklahoma City, feeders were called $2 to $3 lower while stockers were called $5 to $8 lower. Sources: John Michael Riley, Ph.D., Asst. Extension Professor, Department of Agricultural Economics, Mississippi State University...