Monday Market Sentiment: Industry Leaders Predict An Increase In Cash Cattle Prices
11/24/2009 08:47AM
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A survey of cattle-industry leaders suggests the average price for cash cattle will increase 26 cents to 83.08 this week. The increase in the average forecast in CatttleNetwork's Monday Market Sentiment survey marks the first week in nearly a month that industry insiders have predicted an increase in prices.
The Monday Market Sentiment is a forecast of the upcoming weekly cash trade (5-Area weighted average price) prices reported by the USDA. This week prices decreased for the third week in a row. Last week the USDA announced that cash trade for the week ending November 22nd was 82.82, a 7% decrease from a year earlier.
One of the reasons cited for the predictions is the slightly bullish cattle on feed estimates.Justin Gleghorn, broker, Brock Thompson Trading disagreed with the consensus estimate
“We anticipate steady cash trade this week. We viewed the COF report to be neutral, and it appears that packers have the cattle necessary to fill their needs for the near term. Carcass weights have declined off their historical highs, but are still in line with last year’s weights.”
Each week CattleNetwork awards a $100 gift certificate from Cabela's courtesy of Intervet/Schering Plough to the industry leader whose forecast comes closest to the 5-Area cash trade number reported by the USDA. The most recent winner is Tracy Brunner of Cow Camp.