Corbitt Wall gives the weekly USDA Feeder and Cattle Summary for the week ending May 23.
Calves and yearlings sold firm to $5 higher, with some areas selling as much as $10 higher. The market is seeing a lot of demand from feedlots. Wall describes the current condition as "a runaway feeder cattle market." Feedlots are buying pretty much anything—the good, the crippled and the ugly—that they can feed and is made of beef.
Many northern buyers are coming to buy southern cattle because cattle aren’t moving in the northern areas. Lower Mid-West is having some high-volume cattle sales and people are taking advantage of this market, while numbers seem high in some places, it’s just a precursor of how tight things will get down the road, according to Wall. Additionally, Wall predicts that the demand will continue to increase into the summer.
However, the fat cattle market is not keeping up.
Watch Corbitt Wall’s full report on Beef Today’s Cattle Markets Center.