According to Drovers Cattle Network, U.S. feeder cattle futures did hit a record high at the Chicago Mercantile Exchange on Thursday. The boost upward was in reaction to ideas that larger-than-expected supplies of corn will both decrease feed costs and increase the demand in feedlots.
The report that:
Most actively traded March feeder cattle futures feeder cattle hit a high of 152.30 cents per lb, surpassing the previous peak of 152.10 cents set on Jan.5.
The rise was fueled by Chicago Board of Trade corn futures tumbling the daily trading limit of 40 cents per bushel after the U.S. Department of Agriculture’s U.S. corn ending stocks data surpassed trade expectations.
The 6-percent slump in corn futures sparked expectations for a decline in feed costs, which should have feedlots paying higher prices for feeder cattle, which are in tight supply.
Following Thursday’s USDA reports (GET REPORT DETAILS), March corn futures dropped $0.40 to close at $6.11 1/2.
© Northern Ag Network 2012
With Information from Drovers Cattle Network