Corn Concerns May Be Overdone
By Jim Cote
CHICAGO (Dow Jones)–The conventional wisdom says higher corn prices will
push cattle out of feedlots and onto the market, but some traders and analysts
believe those projections are exaggerated.
“The market has paid a great deal of attention to higher corn prices, and I
think feedlots will try to move cattle in a timely manner, but I don’t think
anyone will panic,” said Dan Vaught, an economist with AG Edwards & Sons. “And,
after cattle futures prices have been driven down, the market looks as though
it is setting up for a bull run.”
Cattle have been moving to slaughter at a steady pace, but Vaught said he
believes cattle slaughter levels have been driven by demand for beef, rather
than any desire to dump cattle.