Market Report - May 5, 2023

Cattle Market Report:

I imagine for the next several weeks we will see the markets jumping around a bit. Sellers are aware of market conditions and will start to hold onto cattle more in an effort to get a higher price. On the other side, the feeders and packers are well aware of their financial situation and are going to be reevaluating how to move forward. The more recent down trend in the markets is an illustration of this. There are mixed opinions out there on where we go from here. I think we will be steady to slow increase in the fed market and in a stronger up trend in the weaned calf and feeder markets, though not as aggressive as we’ve seen. If we see some relief on corn prices, we might see stronger climbs. Some are still talking about liquidation, but I don’t think we will see as elevated numbers as we have and am not confident that it will alleviate the low inventory concerns for this year.

Grain Market Report:

Both soybeans and corn had a ride the last two weeks with both ending about where they started. China cancelled a large part of the grain it had ordered which prompted steady drops week before last. There is still a lot of optimism surrounding new crops this growing season. While export markets softening is not great for our Farmers, it will help the cattle industry hold onto these higher prices.

Cattle and Grain Markets for April 21st,  2023

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Sheep Market Report:

Sheep markets were mostly steady to higher last week with the exception of New Holland which was steady to lower. The USDA estimated domestic lamb and mutton meat production for the week ending April 29th totaled 2.07 million pounds on a 34,000 head slaughter this week compared to 2.17 million pounds and 35,000 head the previous week. Imported lamb and mutton meat for the week ending April 22nd totaled 4.69 million pounds which is 216 percent of the domestic production for the same period.

Sheep markets for week ending May 5th, 2023

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Hay Market Report:

Trade in California and some of the warmer climates has picked up a little, though not significantly. Wet weather has interrupted harvest in some areas. Growers are expecting lighter yields as we move into the summer crop, however, I have heard from some that a few warm weeks has caught up growth in certain areas. Dairies are still light buying as milk prices continue to be lower.

*Ross Bronson and Redd Summit Advisors are not financial advisors, and this market report is in no way intended to provide financial advice. This commentary is merely meant to be insight and input about current market conditions. It is recommended that any market commentary be compared to your own trusted sources, experience, and market evaluation. Especially those that are more specific to your regional market dynamics.

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