The recent trend of marginal gains in the cash cattle market is expected to continue this week. Our panel of Monday Market Sentiment experts anticipate another increase this week, but recent comparisons show the predicted increase has been well above the actual increase for the past few weeks.
The good news is the cash market is moving higher and our panel forecasts another increase this week, predicting an increase of 73 cents to $121.07 per cwt.
The Monday Market Sentiment is a forecast of the upcoming weekly cash trade (5-Area weighted average price) prices reported by the USDA. Last week’s average prices improved only slightly. Last week the USDA announced that cash trade for the week ending August 2nd was 120.34, an increase of 22 cents above the previous week.
Cattle feeders are getting some relief as profit margins are improving with dropping feed costs. Packers continue to see profitable margins according to the Sterling Profit Tracker, however their margins have fallen for several weeks.
Feeder cattle prices are moving higher and supplies are getting pinched with beneficial grazing conditions preventing cattle from moving into feedlots. Cooler weather and precipitation bring good news for pastures and cropland. The cooler temperatures in August are expected to boost beef demand giving the cash market a seasonal bounce which is expected to continue into the fall.
Each week the Cattle Trader Center, on behalf of Vance Publishing, awards a $100 gift certificate from Cabela's to the industry leader whose forecast comes closest to the 5-Area cash trade number reported by the USDA. The most recent winner was Pat Knobbe, Knobbe Cattle Company.