Feeder cattle prices are higher for the 11th consecutive week and the recent live cattle futures and wholesale beef rallies bring plenty of good news to the cattle industry. Cash bidding is already active at the start of the week, setting the expectation that cash prices will continue to gain momentum, leading our panel of experts to forecast higher average weekly cash trade for the fifth consecutive week.
This week’s Monday Market Sentiment predicts an increase of $1.03 per cwt to $123.37.
The Monday Market Sentiment is a forecast of the upcoming weekly cash trade (5-Area weighted average price) prices reported by the USDA. The USDA announced that cash trade for the week ending August 9th improved for the fourth consecutive week to $122.34. The cash trade was $2.10 higher than the previous week’s average price.
Higher wholesale beef and feeder cattle prices, along with concerns of fewer cattle supplies after the announcement from Tyson Foods Inc last week in an already tight year have analysts forecasting higher prices for the cattle industry this week. One trader told Reuters the seasonal low has been set and higher trading days lie ahead. Grocers are also expected to start increasing beef orders for the Labor Day weekend.
A bullish corn forecast by the USDA on Monday may raise feed costs at feedlots, but prices remain below last year’s drought-impacted crop.
Each week Drovers CattleNetwork 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.