Last week’s drastic fall lower didn’t discourage our Monday Market Sentiment panel as expectations of lower cattle supplies and beef production weigh on expectations for 2013. The cash market was riding a streak higher for four consecutive weeks, gaining $4.32 in that time, but the streak ended last week when the 5-area average finished $2.05 lower.
This week, the Monday Market Sentiment panel expects the market to rebound, forecasting an increase of 63 cents to $126.72.
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 decreased by $2.05, averaging $126.09.
Beef demand is in question early in 2013 as the widespread flu epidemic and concerns over higher payroll taxes limit grocery spending. Limited beef supply for the year will continue to support retail beef, but higher corn futures are expected to put a lid on feeder cattle futures.
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 Mike Binns, Brookover Cattle.