![]() ![]() This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. ![]() Spam protection has stopped this request. Posted by Smith at 5:04am January 4, 2022 James, Kenny, and I wish you all a Happy New Year! And, as always, please feel free to reach out if we can help. Kenny provided a more in-depth discussion of these tools in this newsletter from last year ( Click Here to Read). Just like with all risk management decisions, the time to think about it is before you might need it. Whether that be through using futures, options, or USDA’s Livestock Risk Protection (LRP), there are tools available to offload some price risk. Current price expectations may offer pricing opportunities for producers looking to manage price risk. Even with the optimistic outlook for 2022, there are (of course) risks and headwinds that could impact markets. Click to view TCR's Weekly Market Summary - Daily Market Summary. The prices below are statewide average prices compiled to show the overall price trend and do not represent prices for any specific market/region within a state. The start of a new year is a good time to consider risk management opportunities that might be useful at some point during the year. Feeder Steer Prices for the week ending June 9th. Feeder cattle futures prices are also much stronger with spring contracts in the mid $170 range and summer contracts topping $180 per cwt. Live cattle futures quotes are around $144 per cwt for April and $138 for the June and August contracts. For reference, there has been only one month (May 2017) that topped $138 since mid-2015.Ĭattle futures contract prices for 2022 traded on CME reflect the optimism for higher prices. This is sharply higher than the monthly weighted average for December 2020 which was about $108 per cwt. Using a simple average of the weekly 5-area averages, fed cattle prices averaged about $138 per cwt in December 2021 (the full monthly weighted average report hasn’t been released yet and could be a little different). Optimism for higher prices in 2022 has been building for months and market activity over the past few weeks has only added to that optimism. As cattle supply shrinks and packing capacity improves over the next few years, leverage for producers to dictate the market will continue to improve, says CattleFax.– Josh Maples, Assistant Professor & Extension Economist, Department of Agricultural Economics, Mississippi State UniversityĬattle markets finished 2021 on a much stronger note than in the past few years. The leverage balance between packers and producers is still a major influence on fed cattle prices, and that market ripples down to the other markets such as feeder calves. Hundreds of Auction Advertisements for Ohio. Tops could be over $2,000 per head, depending on weather and location. Find Pennsylvania grain and livestock prices easily on Farm and Dairy. Bred cows: They could average $1,850 a head, up $225 from last year.Cull cows: Even they are in high demand for their meat-grinding value, and could be in record price territory at $75 per cwt average, and $85 tops.Feeder calves: (550 pounds): $205 per cwt average for 2022, up $35 from last year.That’s $300 per head more than last year. Fed steers: $140 per cwt average for the year, with tops up to $155.Here’s what else CattleFax predicts for cattle price outlook in 2022. Much of that decline in numbers is attributable to lingering drought over the Great Plains, where 35% of the nation’s cow herd lives. The good times should last a while with a shrinking beef herd, according to the latest USDA report, which showed cow numbers declined last year to 30.1 million head. “We had record-high retail beef prices last year, along with record pounds of production.” “Beef demand is the highest in 33 years,” he said at the price outlook report. Now, beef producers have gained back most of that leverage, said Randy Blach of CattleFax this week. Markets Analysis Back to Markets Analysis. ![]()
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