Last week’s improvement in the cash cattle market has industry professionals more optimistic for the week of the Independence Day holiday. This week industry professionals forecast a 27 cent increase in the average price for cash cattle, setting the Monday Market Sentiment at $116.86.
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 increased slightly, ending two weeks of substantial losses. The cash cattle market lost $6.16 in the previous two weeks. Last week the USDA announced that cash trade for the week ending June 29th was 116.59, a 15 cent improvement from the previous week.
The cash cattle market went against Monday Market Sentiment expectations which anticipated another week of losses. Market prices remained steady last week, allowing packers to receive margins of $78.43 per head. Cash prices could move higher during the shortened week with 2,000 fewer head of cattle available for sale this week compared to the previous week. Cattle feeders will need to see higher prices in order to cover elevated feeding costs as earlier-than-expected heat took crop conditions lower.
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 Warren White, Mc6 Cattle Feeders.