According to CattleFax, yields will drive corn prices in 2018-19 marketing year with no significant changes anticipated in acreage or demand. Futures corn prices are projected to range from $3.25 to $3.95 per bushel as supplies remain adequate. With more livestock to feed in 2018 and the smallest acreage on record in 2017, CattleFax predicts hay prices will increase $10-$15 per ton with additional weather-related price risks.
Drought conditions have been spreading across the United States since last winter with the Southwest being impacted the most. Art Douglas, professor emeritus, Creighton University, predicts a possible transition from La Niña conditions to a weaker El Niño by summer. U.S. weather patterns over the next three months will be dictated by La Niña. However, equatorial warming could shift drought patterns across North America by late spring and summer.
During the session, CattleFax analysts predicted fed cattle prices lower than prior year levels, averaging $115 per hundredweight (cwt.). Good said fed cattle prices are likely to face resistance near the $130 level, with downside risk in the upper $90 range. He predicted bargaining position will continue to favor cattle processors and retailers, with profit margins at or above 2017 levels.
CattleFax projected 750-pound steers will average $1 lower than 2017 levels at $145/cwt., with a range from the upper $120s to $160/cwt. Meanwhile, U.S. average 550-pound steer calves will see a trading range from $170/cwt. at the spring high to an average price in the upper $130s, during the fall marketing season. For the full year, calf prices are expected to average $158/cwt.
Welcome
