The following is portion of an article from Drovers CattleNetwork:
Cattle markets – especially lighter stocker and grazing cattle – look set to surge higher, if only it would rain. Stockmen from North Dakota to Texas are experiencing what they already knew – nothing works without water.
Stock ponds are dry, winter grazing is non-existent and hay is too expensive. Still, stocker cattle and yearling prices moved higher last week. Compared to two weeks ago, feeder cattle and calves sold firm to $5 higher on weights over 500 pounds. Lighter weight calves were called erratic and ranged as much as $10 in either direction.
USDA Market News Reporter Corbitt Wall said, “The best demand was shown for cattle suitable for the feedlot, following the holiday shortened week. Major commercial cattle feeders were active bidders as they look to fill available pen space before the end of the year.”
The drought, however, continues to keep the cattle markets in check. “Current stocker and replacement cattle purchases at every level (from a 300 lb calf to an older bred cow) probably have the widest range of expected return than any time in history,” Wall said. “Even some moderate measurements of moisture should cause prices to soar past record levels, while continued dry conditions will limit spring grazing prospects and cause further sell-off of breeding stock.”
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Source: Drovers CattleNetwork
Posted by Haylie Shipp
