Feeder cattle at new record
Rising demand for young cattle, or feeder cattle, has corralled prices to an all-time high again this week, with August feeder cattle charging over $2 per pound. A nationwide shortage of calves and high beef prices have encouraged cattle feeders to pay up for young cattle.
This week’s corn decline also helped to support feeder cattle prices, as cheap corn makes it easier to profitably fatten up cattle, even if farmers have to pay record-high prices for the feeders.
Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker in Valparaiso, Ind. He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.