Corbitt Wall of USDA Market News gives this week’s Feeder and Stocker Cattle Summary for the week ending July 18.
For the first week in a full three months, yearling feeder cattle sold weak to $5 lower and steer and heifer calves sold $5 to $10 lower. After last week’s sharply lower board, there were light runs in market auctions as sellers expected lower prices and decided not to ship their cattle.
This week did show some footing, however. While we didn't see any big 'bell ringing' prices this week, the market picked up on Thursday showing sharp gains.
The overwhelming majority of the summer and fall delivery yearling feeder cattle have already sold, but most of your fundamentalists, Wall says, expect record prices to return and this is just a little correction or hiccup.
We’re seeing sharply lower grains this year and most believe the corn market has said goodbye to $4-per-bushel corn with many expecting corn to continue to drop.
Packers are also hungry for cattle and willing to pay more out-of-pocket prior to delivery, according to Wall. This, he says, is a "strong, strong signal" that implies we are not through with record prices for cattle. As we get into August, fed cattle could creep back up with feeder cattle are likely to follow suit.
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