Monday Market Sentiment: Shrinking supplies recharge cash market
Packer bids and feedlot prices have yet to be posted this week, but clues point to higher prices in the cash market this week. Cattle industry experts are optimistic, expecting cash trade to be higher for the third consecutive week. This week industry professionals forecast an increase of $1.34 in the average price for cash cattle, setting the Monday Market Sentiment at $119.02.
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 improved substantially. Last week the USDA announced that cash trade for the week ending August 3rd was 117.68, a $3.49 increase above the previous week.
Lower cattle supplies will prevent the cash market from losing money this week. According to feedlot sources there are about 1,500 fewer cattle available for sale this week in the Plains than there were a week ago. In addition to limited availability, packers may be willing to pay a little more for cattle with wholesale beef prices on the rise.
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 Joe Morgan, Poky Feeders.