The hottest thing going in U.S. commodity markets is corn and rally in futures because of production worries caused by drought in the U.S. Corn Belt.
This has helped spark a rally in wheat markets but has caused cattlemen especially cow/calf producers to pay attention to what these higher corn values could mean for prices on the 2012 calf crop.
Duane Lenz is an analyst with Cattle-Fax in Denver, CO and gave his perspective on the corn crop and cattle markets to the Northern Ag Network’s Russell Nemetz.
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Even though corn futures for September are up about 37{6b02cb02835b82b7f756ddf6717aaab7139b350de274ea97f5b53eb230607107} over the last three week, Lenz doesn’t look for a fall out in prices being offered for calves.
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And he says that cow/calf producers need to market their calves as normal and sell when they feel they made a little money.
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In addition to corn futures, live and feeder cattle traders are watching for growing stress among cattle owners, who cold be forced to sell urgently as the summer heat wave stresses animals and makes purchases of feed and water very expensive.
Source: DTN & Northern Ag Network
