By: Brenda Boetel, Professor, Department of Agricultural Economics, University of Wisconsin-River Falls
Futures ended last week down. April live cattle prices were down $2.47, while March feeder cattle contract was down $1.50. Technical signals for the live cattle futures appear to indicate a significant decrease in price is looming. Cash markets were firmer at $120, up $1 based on tight supplies of market-ready cattle. Weaker boxed beef prices (down $3.49 from the previous week) and firmer cash market prices continue to erode packer margins. Look for lower cash market prices this week as packers will likely limit buying.
While Omaha cash price was $0.02 lower last week, the December futures price was up and hit the highest level since June 2016. This price increase will likely only last a few weeks more until the March planting intentions at the end of March are released.
|Week of||Week of||Week of|
|Data Source: USDA-AMS Market News||2/10/2017||2/3/2017||2/12/2016|
|5-Area Fed Steer||all grades, live weight||$119.75||$118.76||$131.56|
|all grades, dressed weight||$190.05||$189.78||$205.92|
|Boxed Beef||Choice Price, 600-900 lb.||$189.39||$192.88||$217.63|
|700-800 lb. Feeder Steer||Montana 3-market||$128.96||$129.64||$153.59|
|500-600 lb. Feeder Steer||Montana 3-market||$156.32||$149.36||$194.13|
|Feed Grains||Corn, Omaha, NE, $/bu||$3.42||$3.44||$3.50|
|DDGS, Nebraska, $/ton||$105.00||$106.50||$131.70|