The corn market has fallen sharply the last two weeks, a good sign for stronger fall feeder-cattle prices, writes Dillon Feuz, University of Nebraska economist, on the Livestock Marketing Info Center (LMIC) Web site -- http://www.lmic.info/. Feuz says favorable weather in much of the Corn Belt is pressuring prices lower, with a decline of 30¢/bu. in corn price probably adding $2/cwt. to an 8-weight feeder, and $4/cwt. to a 6-weight. December corn was priced at $2.55/bu. in March, rallied to $2.85 in mid May, but has since declined back to the $2.55 level.
He reports a Superior Livestock video auction in Des Moines, IA, last week found average prices for 7-weight steers for August-September delivery around $115/cwt. for the south central region. Meanwhile, steer-calf prices for 5-weights for October-November delivery averaged $123/cwt. in the south central region, and $126/cwt. in the north central region.
Feuz says if the price of corn remains at the current level or declines further, he expects a couple more dollars in the price of feeders and calves this fall.