Feeder Cattle Prices Begin Seasonal Increase
Dr. Curt Lacy (UGA)
700-800 feeder steer prices in the Southeastern US tend to reach their annual peak in July and August. This year appears to be following the same pattern.
Unlike calf prices that saw a substantial price decline a few months ago, feeder prices have remained fairly stable. In addition to the seasonal aspect, two major factors have contributed to the strengthening feeder cattle prices: tightening feeder cattle supplies and decreasing corn prices. The combination of these two fundamental factors have allowed feedyards to bid up prices for feeder cattle in recent week.
Producers preparing to market feeder cattle in the next few weeks can look forward to stable to increasing prices barring a major market schock. However, they should make plans to have most of their marketing done by October when cattle prices tend to deteriorate rapidly.
