ShayLe Stewart

The market may have unexpected days when it surprises all involved; but rarely is it a good idea to abandon long-term marketing strategies because of one day's unforeseen weakness.

There's an argument to be made that the market should be able to rebound from last Friday's meltdown. On the other hand, there's a strong argument to be made that maybe the futures complex needs a break.

No one ever expects fed cattle prices to rally through July, as typically it's a time when supplies are heavy, and as boxed beef prices seasonally decline, fed cash cattle prices normally do as well. But feedlot managers have stayed...

While people wanted clear signs of herd rebuilding, that's not what the July 25 cattle reports indicated.

What cattlemen and traders alike will be quickly searching for when USDA's July 1 Cattle on Feed and Cattle inventory reports come out on Friday are clues to the status of U.S. herd build-back.

Although feedlot managers are working with lighter showlists this week, they're going to face some pushback as the board is likely to remain cautious and packers do have more cattle committed to them in the deferred delivery option.

With feeder cattle prices at an all-time high, more producers have elected to market their calves earlier this year compared to years past.

Limited supplies and strong demand have been the biggest reasons why both the live cattle and feeder cattle markets have traded higher, and why for now the market will likely remain strong.

With the cattle complex off to an aggressive start for the new week, cattlemen are crossing their fingers that prices will remain strong as some set out to market their 2025 calves.

Steers weighing between 500 and 740 pounds traded $38 to $66 per hundredweight (cwt) more recently on the Corn Belt Classic video auction, compared to prices seen in 2024.

Packers have slowly been able to build up supply, which is hindering the fed cash cattle market trade. However, thus far, that has not affected the feeder cattle market as buyers continue to buy calves at record-high prices.

Record high cattle prices come with more volatility. You'll never outthink the cattle market, but you can have a plan to deal better with it.

May placements are expected to be down in Friday's June 1 USDA Cattle on Feed report, which means the trade is likely to view the report as bullish, according to DTN Livestock Analyst ShayLe Stewart.

When the cattle market's two biggest factors (its technical and fundamental indicators) work against each other, then turmoil, volatility and uneasiness should be expected.

What cattlemen will keenly watch this week is Superior's Corn Belt Classic Sale, and the Cattle on Feed Report on Friday.

Following last week's unbelievable surge in both the fed cash cattle market and the futures complex, traders are hopeful support will allow the market to trade higher again this week.

Be aware of what the contracts are legally allowed to do, and how that could affect your commodity assets.

USDA's May 1 Cattle on Feed report on Friday is expected to be neutral to somewhat bullish, with pre-report estimates predicting all three major categories to be lighter than a year ago.

Holiday-shortened weeks always throw a kink into the market's normal trading rhythm; but with some technical and fundamental pushback at hand, the market will likely remain hesitant to move much higher until after the Memorial Day...

With packers having built up some supply during the last three weeks, and with the upcoming Memorial Day holiday, it's likely fed cash cattle prices could trade steady this week.