Monday Market Sentiment: Cash market turnaround to continue
Last week’s cash market was higher for the first time in three weeks, gaining $1.36. The rebound leads industry experts to believe the market has reached a bottom and improvements will continue this week. Industry professionals are forecasting an increase of $1.83 in the average price for cash cattle, setting the Monday Market Sentiment at $116.03.
The Monday Market Sentiment is a forecast of the upcoming weekly cash trade (5-Area weighted average price) prices reported by the USDA. Last week’s cash market increased by more than a dollar for the first time in almost two months. The USDA announced that cash trade for the week ending July 27th was $114.20.
Gains last week allowed the cash market to recover about a third of the losses amassed over the previous two weeks. The higher market price improves cattle feeding margins, however high feed costs have feedyards losing more than $250 per animal sent to market.
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 Scott Keeling, Keeling Feeders.