USDA: Feed Grain Markets Affects Cattle Prices
US - In the latest Livestock, Dairy and Poultry Outlook, USDA says rains across much of the mid-United States in late March and early April boosted pasture and range prospects for 2007. Additionally, USDA says given larger corn and wheat planting intentions, grain and cattle prices may display some volatility during the spring and summer in concert with weather conditions.USDA also notes calf slaughter continues at a rate well ahead of 2006. Cumulative year-to-date federally inspected (FI) calf slaughter for the week ending March 31, 2007, was 27 percent above the same period of 2006. Despite much higher FI calf slaughter, cumulative veal production for 2007 was up only 12 percent over the same period in 2006, reflecting the relatively light calf slaughter weights as a result of deteriorating pasture conditions through the winter and lack of demand for feeder cattle for grazing or, combined with high corn prices, for feedlot placements from late fall 2006 through winter, says USDA.
Source: AgWeb