Lower corn prices and rising wholesale beef prices encourage the cattle industry this week with presumptions of lighter placements in this Friday’s USDA cattle-on-feed report also weighing on the market. The Monday Market Sentiment panel expects steady gains to continue for the third consecutive week. This week industry professionals forecast an increase of $1.11 in the average price for cash cattle, setting the Monday Market Sentiment at $125.37.
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’s prices improved steadily. Last week the USDA announced that cash trade for the week ending October 12th was 124.26, a 67 cent increase above the previous week.
The USDA report at the end of the week is expected to show another downturn in cattle placements. Traders are expecting a strong cash market given two consecutive weeks of gains and tight show lists compared to the previous week.
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 Jeff Cox, Northwest Cattle Feeders.