Cash cattle trade picked up momentum last week, trading over a dollar higher compared to the previous week. Bids and asking prices were separated by four dollars midway through the week before trade settled above $124 per cwt prior to Friday’s Cattle on Feed report.
Our panel of cattle industry experts sees last week’s gains as the beginning of a trend higher, fueled by shrinking cattle supplies. This week’s Monday Market Sentiment panel predicts trade to move a dollar higher, averaging $125.12 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. This week’s average cash price improved by $1.07 per cwt over the previous week. Last week the USDA announced that cash trade for the week ending September 20 was $124.12 per cwt.
Cash market gains, fewer cattle available and lower corn prices have helped feeder margins move out of the red, averaging $42.88 per head last week. Wholesale beef prices were firm at the start of this week, leading analysts to believe a seasonal bottom has been set and gains in the market lie ahead.
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 Shelby Jones, Ranger Feeders.