Latest on Cattle Market Swings

  • Cattle futures market: There was a positive trend, with live cattle futures being 25 cents to $1.05 higher across the front months. Feeder cattle futures also showed gains, ranging from $1.30 to $2 stronger.
  • Cash market: There is a disconnect between futures and cash markets. Packers were reportedly bidding lower, while cattle feeders were holding firm for higher asking prices.

Here’s a breakdown of the key points:

  • Futures Market Upward Trend: The increase in futures prices suggests some market optimism for future cattle prices.
  • Feeder Cattle Strength: The gains in feeder cattle futures could indicate increased confidence in the demand for slaughter-ready cattle.
  • Cash Market Stalemate: The lack of agreement between cattle feeders and packers on prices indicates a potential impasse. There are various contributing factors, such as:
    • Packers have enough inventory and do need to buy less aggressively.
    • Feeders are holding out for better prices due to rising futures markets.

The Cattle market is at a stalemate; news regarding Avian flu infections of Cattle continues to trickle through, bringing new dynamics to the market. An unsettled grain market continues to affect input costs as planting season fast approaches. While futures markets are buoyant, the cash market is hesitant. It will be interesting to see how this dynamic plays out in the coming days.


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