Monday Market Sentiment: Beef demand slowing before Thanksgiving
Our Monday Market Sentiment panel expects cash cattle prices to further decline as consumers shop for Thanksgiving turkeys rather than beef with the holiday approaching. The latest Monday Market Sentiment shows a 78-cent decline as experts forecast the cash market to decline for the third consecutive week. This week’s forecast is $124.13 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 $1.29 to $124.91 per cwt. The decline marks the second consecutive week of losses, with the cash market losing $1.69 over the two-week stretch.
The cash market started the week quiet, but traders expect prices to decline, continuing a trend set late last week. Light volumes are expected in the next two weeks due to the shortened Thanksgiving week and low demand from packers who have adequate supplies.
While beef demand is in a seasonal slowdown, cattle producers can take advantage of declining corn futures prices to rebuild liquidated herds. Cattle supplies are expected to remain low entering 2013, keeping beef prices near record highs.
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 Joe Morgan, Poky Feeders.