Fall feeder cattle prices rise

Feeder cattle prices have risen about $20 per hundredweight since late May, according to Derrell S. Peel, analyst with Oklahoma State University.

He said after being on the defensive during the first half of 2013, feeder cattle markets are poised to hold stronger for balance of this year. 

Peel credits good prospects for a large corn crop and lower commodity prices in conjunction with significantly improved forage conditions for the better feeder prices and more marketing options for cow-calf producers.
 
Calf prices are about $25 per hundredweight above this time last year.

Peel said last year calf prices increased $20 to $22 per hundredweight between August and November. The feeder futures price would indicate that 500 pound steers in Oklahoma City would be at least $172 per hundredweight in November but the strong basis this month suggests that the price could be $180 per hundredweight or higher this fall.

Both the cash market and the feeder futures indicate that cow-calf producers should expect calf prices that are $10 to $15 per hundredweight higher than last year come November.