The momentum that's building in the live cattle market is fueling excitement in cattlemen across the nation. During the past month, the market has had wins throughout the cash cattle market in terms of price levels reached and volumes sold, as well as in the processing sector as slaughter speeds have been extremely aggressive.
There are always unforeseen circumstances that can throw a curveball into the marketplace, but as demand sits, the live cattle market stands an excellent chance at keeping this heightened energy through the spring of 2022.
These days, it's almost costly to not keep an eye on the horizon and try to be one step ahead of anything that's to come. But in doing so, cattlemen have at times overlooked the importance of the cash cattle market which negatively serves all involved. I thoroughly understand that grid and formula deals hold an undeniable portion of the market, but just as it would be frowned upon to think of a complex without grid and formula deals, it's foolish to think of the fat cattle market without having a lively and healthy cash cattle trade.
The successes of the cash cattle market during the last month cannot be denied nor overlooked. Breaking down November when the market's charged ahead with unwavering support, both cash cattle volumes have risen as well as cash cattle prices. For the week ending Oct. 29, there were 103,877 head of cattle traded in the cash cattle market and prices jumped $2 to $4 higher. In the next week, ending Nov. 5, there were 96,867 head of cattle that traded through the negotiated cash market, and prices jumped $2 to $5 higher. In the next week, ending Nov. 12, there were 118,797 head of cattle that traded through the cash market, and prices climbed $3 to $4 higher. And, for the week ending Nov. 19, 2021, there were 116,750 head of cattle traded through the cash market, and cash prices jumped $1 to $3 higher.
Thankfully, the momentum that's surging throughout the cash cattle market isn't the only sector of the live cattle market that's rallying. Technically speaking, the board sits with traders eager to invest and have no significant resistance plans in the near future. Processing speeds have been clipping through cattle at lightning speeds as the market sees domestic and international demand. Based on Friday's Estimated Weekly Meat Production Under Federal Inspection, to date the U.S. has processed 29,588,000 head of cattle, which is 3% more than what the market had processed at this time last year.
It's an exciting time for the live cattle market, and as producers look ahead to the new year, they can't help but hope that momentum carries through until the spring high is set.
ShayLe Stewart can be reached at firstname.lastname@example.org
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