Sort & Cull

What a week, what a week, what a week it was last week for the entire cattle complex. Both the live cattle and feeder cattle contracts rallied throughout the week, hoping and believing that the week's fed cash cattle market would trade higher. Lo and behold, when Friday rolled around, fed cash cattle prices traded higher.

Luckily, through Monday's trade, both the live cattle and feeder cattle markets were able to keep most of their contracts higher. But with the monthly Cattle on Feed report set to be released this Friday, Oct. 23, the next question becomes: Will the market be able to keep the bullish momentum alive this week?

And while I'm the first to openly say that the Cattle on Feed report typically has a bearish effect on the market leading up to its release, as traders brace themselves for whatever may be revealed in the report. However, I personally believe that there's a good chance that the market is able to keep a strong trendline through this upcoming week.

Luckily, fed cash cattle supplies are manageable, which leaves feedlot managers in a comfortable position. This allows them some flexibility to wait the week out and let the report be released before they likely feel pressured to get their showlists marketed.

Pre-report estimates lead one to believe that the report could be viewed as bullish again, as placements are expected to be lower than a year ago. If that is indeed the case, it could help feedlot managers secure another opportunity to add another $1 or $2 to the fed cash cattle market.

Not to mention, although it's not typically a time in which the market expects to see a sizeable increase in beef demand, packers have taken note of the stable and consistent demand they've recently seen. They processed 553,000 head last week, which is the third largest slaughter thus far for 2026.

Last week, Northern dressed cattle traded at mostly $355, which is $10 higher than the previous week's weighted average. Southern live cattle traded at mostly $224, which is $4 higher than the previous week's weighted average. The week's total negotiated cash cattle trade totaled 90,762 head. Of that, 90% (81,611 head) were committed to the market's nearby delivery option, while the remaining 10% (9,151 head) was committed to the market's deferred delivery option.

Traders have been extremely supportive of the market's desire to trade higher in recent weeks. As long as the fed cash cattle market can trade at least steady later this week, if not potentially higher, there's plenty of reason to believe that this week's market could trend higher once again.

ShayLe Stewart can be reached at ShayLe.Stewart@dtn.com

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