A survey of cattle-industry leaders suggests the average price for cash cattle will rise 25 cents to 84.01 this week.
The increase in the average forecast in CatttleNetwork's Monday Market Sentiment survey marks the 14th week in a row that industry insiders have predicted an increase in prices. The Monday Market Sentiment is a forecast of the upcoming weekly cash trade (5-Area weighted average price) prices reported by the USDA. Prices continue to yo-yo back and forth over the past month. Last week the USDA announced that cash trade for the week ending September 20th was 83.76, a 14% decrease from a year earlier.
One of the reasons cited for the predictions were postive beef prices prices.
Jeff Apel, floor trader at the Chicago Mercantile Exchange agreed with the consensus estimate.
"Cash trade this week should be steady to 50 cents higher. Boxed beef will clean up by the end of the week. With the premium of futures to cash narrowed,the board should not be such a drag on the market late In the week."
Each week CattleNetwork awards a $100 gift certificate from Cabela's courtesy of Intervet/Schering Plough to the industry leader whose forecast comes closest to the 5-Area cash trade number reported by the USDA. The most recent winner is Ben Fort of Heritage Beef.