![]() Additionally, feeder cattle price for cattle weighing 600 – 800 lbs is found to be not affected by changes in corn price as the coefficients are not statistically significant. For September 2013 through August 2016, this relationship no longer held as heavy weight (800-900 lbs) feeder cattle price is the most sensitive to changes in corn price. I found that from September 2010 through August 2013, the corn and feeder cattle relationship appeared as expected, with feeder cattle price sensitivity to corn price declining as weights increased. ![]() I used the current nearby corn futures for each month and used the live cattle futures 8 months out for 4-600 lb. I broke the data into two time periods: September 2010 through August 2013 and September 2013 through August 2016. I looked at weekly feeder cattle prices from Oklahoma from September 2010 through August 2016. In this newsletter, I want to revisit the question of what is the relationship between corn and feeder cattle price, and see if this relationship has changed again in recent years? corn production, and the new crop corn at $3, it is interesting that there has been almost no upward response in the feeder cattle market. Given the current strong forecast for U.S. For 2007-2011 he found overall feeder cattle prices were less responsive to changes in corn prices than historically thought. Feuz wanted to examine a historical idea that a $0.10 decrease in corn prices resulted in a $1/cwt increase in feeder cattle price. Several years ago, Dillon Feuz wrote an article for In the Cattle Markets on the relationship between corn and feeder cattle prices. This assumes that all other factors have remained constant, including other feeding costs as well as fed-cattle price. This means, as the price of corn increases, the price of feeder cattle decreases. The corn price has typically had an inverse relationship to both fed and feeder cattle prices. Historically feeder cattle prices have been determined by several factors, with corn price and fed-cattle price having the greatest impact. Despite a relatively modest downturn of 6% year-on-year in value, the US remained the third largest export destination by volume and value 87.– Brenda Boetel, Professor, Department of Agricultural Economics, University of Wisconsin-River Falls Korea was a standout with preferential tariffs supporting trade to the market. Despite the increase in total market value, the quantity of exports to Japan declined 5% year-on-year, with a rise in the unit cost but a decrease in volume in both the high-value chilled and lower-value frozen markets. China is the state’s fourth largest chilled beef export market (by quantity) after Japan, the US and South Korea.īeef exports to Japan delivered a solid 5% gain in value year-on-year, reaching just over $401 million 87. ![]() Despite the dominance of the lower-value frozen beef market, there is a trend towards a greater proportion of chilled exports, which more than doubled year-on-year to 12% of total trade 87. As a premium product, chilled beef comprises only a small proportion of China’s total beef imports. This increase in value came from both high and low value cuts, with both up by 126% and 98% respectively year-on-year 87. China is the main driver behind this export growth, absorbing an additional 30,000 tonnes (or 91% year-on-year growth) and increasing in value by an incredible 101% year-on-year to more than $500 million 87. NSW exported a total of 219,000 tonnes of beef, valued at $1.8 billion, an increase in value of 22% year-on-year 87.Īsian demand continued to fuel exports. Global demand remained strong for Australian beef exports in 2018–19, with solid competition from global suppliers boosting prices during a time of increased supply. The drought was the dominant driver for the number of cattle on feed, evidenced with feedlots at 79% utilisation, with the sector playing a significant role in managing seasonal variability and enabling the continued delivery of high-quality beef to global customers 28. The number of cattle on feed remained relatively steady on the record 2017–18 numbers, down 0.7% year-on-year but up 23% on the 10-year average. Adult carcase weights were down 4% year-on-year, reflecting the unfavourable seasonal conditions and the higher female slaughter rate 107. The high slaughter rate resulted in an increase in total beef production, up 7% year-on-year to 535,540 tonnes carcase weight 107. Slaughter reflected the high turnoff rate, up 12% year-on-year, and propelled almost entirely by an increase in female slaughter, up 23% on 2017–18 volumes and equated to 52% of the total state adult slaughter for 2018-19 107. Dry conditions persisted across many of the state’s key cattle production areas compelling many producers to continue to offload stock, and furthering the herd liquidation.
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