The rally of higher cash cattle prices ended last week as the market fell 20 cents. The 5-area price was 50 cents lower than last week’s Monday Market Sentiment and the drop ended four weeks of consecutive gains. Experts predict the market will recover with this week’s Monday Market Sentiment forecasting a 9 cent increase to $120.41 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. The USDA announced that cash trade for the week fell 20 cents to $120.32. The decline ends a month-long rally where cash prices gained $7.68.
Some analysts expect the cash trade to decline with weaker wholesale beef prices and lower demand from packers going into a shortened week due to Labor Day. Live and feeder cattle prices for August increased Monday.
Lower feed costs may support the feeder cattle market this week and additional rain to drought-impacted areas brought on by Issac may promote pasture growth for winter grazing.
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 Ryan Loseke, Loseke Feedyards.