One analyst is reporting 53,000 total head so far traded. Below are the individual state prices. What do you think? And what do you think these high grain prices are going to do to your p & l statement? Does it affect hogs more or cattle?
Re: Feedlot and Dairies in the SW
are full of wheat. That is what actually got the wheat situation current starting end of May thru June.
Wheat got down to the low 3's with some batches of supposed "off wheat " in the high 2's.
Folks who feed Loaded up. ( perhaps 300 million to 500 million bu actually is now in feed use ).
Corn in the area was right at $4 at the time,
SOO makes alot of sense to own a bu of wheat that has 110% more feed value per bu than corn anyway.
Seasonally cattle have a summer low in the July thru Mid Aug time frame.
It appears that low was actually end of July for 2010.
Historically, from the summer low there is a $5 cwt Up from said time thru 1st part of Oct.
Feed costs on cattle ( Oct thru Spring ) will actually drop quite a bit with farmers planting more winter wheat, thus there should be plenty of wheat grazing going begging due to less cattle numbers for grazing too.
Generally 400 to 500 lbs net gain fall thru spring on calves grazing wheat.