Optimism continues in feeder cattle market

The feeder cattle market continues to be strong as spring nears. “There is certainly optimism in the calf and feeder cattle market,” says Andrew Griffith, Extension ag economist with the University of Tennessee. “One has to look no further than feeder cattle futures to recognize there is considerable optimism for prices to increase. “A simple example is the difference in the March feeder cattle contract and the October feeder cattle contract, which is $20 per hundredweight. In other words, the futures market is predicting an 800 pound steer will be worth $160 more this fall than right now.” The CME feeder cattle index value as of March 13 was $248.46, which is $20/cwt. higher than where it started the year and $33/cwt. higher than the December low, Griffith says in his weekly market outlook. “Given the rapid ascension the past four months, it is easy to say the price could gain another $20 as the futures market is predicting over the next four to six months,” he says. A closer loo