Senior Farm and Ranch Broadcaster, Ron Hays, is talking with the Director and Senior Agricultural Economist at the Livestock Marketing Information Center, Katelyn McCullock. Hays and McCullock talk about wholesale boxed beef trade, the cattle futures markets and more.
“The cash side of things closed Friday, really strongly at $3.43 for Choice and $3.10 for Select,” McCullock said. “This has been an incredible market to watch as well. Just a week ago, we were closer to $3.32 on the Choice side.”
The underlying fundamentals of these prices, McCullock said, are largely supply driven.
“We have had this note of strong demand that has also pulled those cattle prices through and so we have got both sides of supply and demand getting cattle prices in the same direction right now,” McCullock said.
One thing that will be watched closely, McCullock said, is post 4th of July sales.
“I don’t expect it to be a large reset, but it wouldn’t be out of the question to see that price come down some,” McCullock said.
McCullock also talked about fed cattle prices and feeder cattle prices.
“We have a little bit lower prices on the fed side and on the feeder side, heading into summer,” McCullock said. “I think your feeder prices are going to be pretty sticky as long as it continues to rain. There is a little bit of worrisomeness, I guess with the dryness in the corn belt, but absent of that, feed cost outlook looks good.”
Demand from cattle feeders looks strong, McCullock said, especially with such strong fed cattle price out there.
“The margins are there to continue to pay for feeder cattle,” McCullock said. “The worry would be, I guess, how much does the fed cattle market reset here.”
As for the fed cattle futures market, McCullock said, it has been below the cash cattle market.
“They are anticipating a little lull in the market as well,” McCullock said.
McCullock urges cattle producers to prioritize grass levels and forage capabilities this summer.
“That is going to be what enables people to, if they are interested in expanding, to move quickly and kind of get ahead of that huge rush on what bred animals are probably going to do in the next couple of years,” McCullock said.
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