Sort and Cull

What an accomplishment! Last week's fed cash cattle market gained another substantial leg up as both Northern and Southern cattle traded higher. Feedlot managers were able to clean up their showlists and get extremely current heading into the long-holiday season -- both were significant achievements for those managers.

To recap, last week Northern dressed cattle traded at mostly $353 to $355, which is $10.00 to $12.00 higher than the previous week's weighted average. Southern live cattle traded at mostly $230, which is $6.00 higher than the previous week's weighted average. The week's total negotiated fed cash cattle trade totaled 103,180 head, which is the largest weekly traded volume for both 2024 and 2025. Of the 103,180 head, 79% (81,157 head) were committed to the market's nearby delivery, while the remaining 21% (22,023 head) were committed to the market's deferred delivery option.

With packers now having a surplus of cattle stacked up around them, it's likely their activity in the fed-cash cattle market will be limited until after the New Year. This could also affect the futures complex as the market has been trading alongside its 100-day moving average, desiring to trade above that threshold, but not totally convinced the market possesses enough support to conquer that level just yet. So, if fed cash cattle prices simply trade steady to somewhat lower until after the New Year because packers aren't pressed anymore to secure inventory, the futures market won't likely see the support it needs to challenge that resistance point in 2025. The market will just have to hash out some things in 2026. But that's not to say in due time the complex won't be able to conquer that threshold; it's just most likely the timing isn't right, right now.

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

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