Stocker and feeder cattle sold higher at auctions last week, but pressure on prices may develop as a result of the the WASDE report which projects smaller corn and soybean acres and higher grains prices.
Jan. fed cattle prices are normally choppy and we’re seeing that pattern in 2021. A primary difference, compared to 2020, is that last week’s average price is $14/cwt. lower, the same discount as the 5-year average.
The onset of the COVID-19 hit the livestock industry especially hard. A sudden loss of demand caused prices to plummet. But thanks to the ability to pivot quickly, livestock producers showed resilience in 2020.
Cattle feeders gained enough leverage to push negotiated cash cattle prices higher during both holiday weeks as 2020 drew to a close. Supplies of fed cattle will tick lower during the first quarter of 2021.
The editors at AgWeb.com are looking at experts’ projections for commodities in 2021 to help you succeed in the coming year. Here’s a look at what analysts expect for the upcoming year in the protein segments.