Call for Corn Bids

Graettinger, IA

Lee Carpenter

(712) 859-3663 Ext. 202

Lake Mills, WI

Pete Wollin

(920)648-2377 Ext. 18




Friday, October 30, 2020  
Weather |  Futures |  Futures Markets |  Market News |  Headline News |  DTN Ag Headlines |  Charts |  Portfolio |  Options |  Corn News |  Soybeans News 
About Us
Delayed Futures
Discount Schedule
Local Grainbids
USDA Reports
Daily Commentary
Admin Login
Cash Bids
- DTN Headline News
Call the Market
By ShayLe Stewart
Thursday, October 29, 2020 3:13PM CDT

Last year at this time, cattlemen were looking at a completely different feeder cattle market. Following the packing plant fire in Holcomb, Kansas, the fall feeder-cattle run was slow to start as cattle prices crumbled. But as we moved into October, the cattle market had ample support.

By the middle of October 2019, the live cattle market had a successful $17.60 rally over 36 days and was well above the 40-day ($103.06) and 100-day ($105.74) moving averages at $111. Because of the fruitful rally in live cattle, feeder cattle were absorbing some of the live cattle market's energy. Though feeder cattle prices weren't anything producers were going to get rich on, they relished the fact that the market had a strong undertone and was well supported, giving producers the confidence they needed to market their calves.

Fast forward to the fall of 2020. While the live cattle market dances relatively close to where prices were just over a year ago, the market's tone and demeanor are completely different. On Oct. 1, the live cattle market closed at $111.82. As of Oct. 27, the market has fallen $7.77 over the last 27 days to $104.05, falling well below the market's 40-day moving average ($109.72) and 100-day moving average ($108.74).

Though live cattle and feeder cattle are two separate markets, they tend to walk hand in hand; strength in one market can easily be absorbed by the other. That is especially true when it comes time to market calves and feeder cattle, as cattle buyers are meticulously looking at their breakevens, monitoring initial expense (the purchase of the calf) and input costs (feed, labor, yardage and trucking), and gauging a desired output price (live cattle price).

Consequently, feeder cattle prices have weakened through the month of October. With corn prices dancing awfully close to $4.20 per bushel, live cattle prices are scaling lower, and as supply outweighs demand throughout the countryside, the odds have been stacked against the feeder cattle market.

When it comes to marketing feeder cattle, you'll often hear market specialists talk about the importance of consistency. If, analytically, you've done your homework and found a time in the market when prices usually favor sellers, being consistent in your marketing strategy can pay dividends over time (the key being over time).

There are times when the market all but flashes red lights and begs producers to sell. At this point, however, producers are probably better off stepping back, reevaluating the marketplace and potentially selling at another time.

If there's one thing we all have learned this year, it's that, in our day-to-day lives, in our working environments and in our businesses, we've got to be flexible. Having a marketing plan is vital! I cannot stress enough the importance of being active and informed participants within the marketplace. But that also means being willing to adapt as situations arise.

ShayLe Stewart can be reached at

blog iconDTN Blogs & Forums
DTN Market Matters Blog
Editorial Staff
Monday, October 26, 2020 11:26AM CDT
Friday, October 23, 2020 11:03AM CDT
Monday, October 19, 2020 11:43AM CDT
Technically Speaking
Editorial Staff
Monday, October 26, 2020 10:39AM CDT
Monday, October 26, 2020 10:39AM CDT
Monday, October 19, 2020 8:43AM CDT
Fundamentally Speaking
Joel Karlin
DTN Contributing Analyst
Wednesday, October 21, 2020 1:07PM CDT
Tuesday, October 20, 2020 11:12AM CDT
Friday, October 16, 2020 8:17AM CDT
Minding Ag's Business
Katie Behlinger
Farm Business Editor
Monday, October 26, 2020 3:01PM CDT
Tuesday, October 6, 2020 11:26AM CDT
Thursday, August 27, 2020 9:04AM CDT
DTN Ag Weather Forum
Bryce Anderson
DTN Ag Meteorologist and DTN Analyst
Thursday, October 29, 2020 2:32PM CDT
Tuesday, October 27, 2020 1:00PM CDT
Friday, October 23, 2020 4:19PM CDT
DTN Production Blog
Pam Smith
Crops Technology Editor
Monday, October 26, 2020 5:10AM CDT
Friday, October 16, 2020 3:38PM CDT
Tuesday, October 13, 2020 3:13PM CDT
Harrington's Sort & Cull
John Harrington
DTN Livestock Analyst
Monday, October 26, 2020 2:12PM CDT
Monday, October 26, 2020 2:12PM CDT
Wednesday, October 21, 2020 3:52PM CDT
South America Calling
Editorial Staff
Tuesday, October 27, 2020 2:52PM CDT
Thursday, October 15, 2020 2:29PM CDT
Thursday, October 15, 2020 2:29PM CDT
An Urban’s Rural View
Urban Lehner
Editor Emeritus
Monday, October 19, 2020 11:00AM CDT
Monday, October 12, 2020 10:39AM CDT
Thursday, October 1, 2020 2:57PM CDT
Machinery Chatter
Dan Miller
Progressive Farmer Senior Editor
Friday, October 30, 2020 5:10AM CDT
Friday, October 30, 2020 5:10AM CDT
Friday, October 23, 2020 5:10AM CDT
Canadian Markets
Cliff Jamieson
Canadian Grains Analyst
Thursday, October 29, 2020 3:29PM CDT
Thursday, October 29, 2020 3:29PM CDT
Wednesday, October 28, 2020 4:01PM CDT
Editor’s Notebook
Greg D. Horstmeier
DTN Editor-in-Chief
Friday, September 4, 2020 3:48PM CDT
Thursday, August 13, 2020 11:42AM CDT
Monday, June 29, 2020 1:35PM CDT
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN