Monday Market Sentiment: Slowing beef demand limits packer bids
Hotter temperatures steer consumers away from outdoor grilling and heavy meals, curbing wholesale beef demand. The Monday Market Sentiment estimates a steady cash market as packers may offer lower bids but contracted supplies help keep bids from falling sharply until more cattle move off dry pastures and into feedlots. Although some predictions were for a market decrease of over two dollars, the Monday Market Sentiment shows the cash market will decrease by 12 cents to $114.57 per cwt this week.
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 prices fell $2.35. The USDA announced that cash trade for the week was $114.69, showing a steep fall after two weeks of marginal gains. The cash market has fallen $7.90 over the past five weeks.
Cattle producers are selling cattle early to avoid paying higher feed costs as corn futures approach all-time record highs. Meanwhile feeder cattle futures fell limit-down on Monday.
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 Mike Binns, Brookover Cattle.