Sort & Cull

The Cash Cattle Market Carves Out New Highs

ShayLe Stewart
By  ShayLe Stewart , DTN Livestock Analyst
When the market is in the midst of a strong bull run, it's easy to forget how much the market has improved, which is why looking at charts can be helpful. (DTN ProphetX chart)

I was scrolling through my Facebook memories this past weekend and I stumbled across a Cattle Market News video that I did a couple years ago. In the video's summary, I shared that fed cattle prices were up $2 from the previous week to average $148 in the Southern Plains ...

I reread the report's summary and took a minute to process just how much the market has changed in the last two years -- and I think it's important that we look back and do that from time to time.

During the past year, cattlemen have received higher prices for their cattle regardless of whether they're selling feeder cattle, finished fats or replacement females. Just last week the cash cattle market carved out yet another, new all-time high for both regions.

Last week, Northern dressed cattle averaged $302, which is $4 higher than the previous week's weighted average and surpasses the previous highs made in June of 2023. And Southern live cattle also saw tremendous support as prices averaged $187, which is $2 higher than the previous week weighted average, and surpass the previous highs established in the South earlier this month.

One would like to think that the market would take this bullish news and run with it! But when you study both the live cattle and feeder cattle market's charts, it's hard to demand that the market do much more when historically speaking the market is trading at its highest level. When the market is in the midst of a strong bull run, it's easy to forget how much the market has improved -- which is why looking at charts can be helpful.

The cash cattle market could be pressured this next upcoming week as packers were able to buy some cattle with time last week, and higher carcass weights mixed with slower processing speeds slowly backs up supply on its own accord. But adversely, it's likely that the feeder cattle market trades higher and stronger as buyer demand continues to push feeder cattle prices higher in the countryside and with parts of the Northern Plains getting snow this past week -- cattlemen will grateful that some much needed moisture was received.

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

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