In the last CAB Insider, we reported on a rapidly retreating fed cattle market scenario. However, much has changed in the two-week interim.
The fed cattle price recovery that has been painstakingly built since early September has eroded in an extraordinary decline over the past two weeks.
Fed cattle prices have steadily increased since the second week in September, adding roughly $7/cwt. to the short-term low at that time. Last week saw early trade mostly at $108 to $109/cwt.
Last week’s trade featured what cattle feeders hope is a trend reversal, with a $1 to $2/cwt. increase across major feeding regions.
The brand recently announced two additional carcass spec modifications to further enhance opportunities for stakeholders.
Seven weeks of slight improvements in fed cattle pricing came to a halt as packers paid $1 to $2/cwt. less for fed cattle last week.
The fed steer and heifer market keeps working toward normalized levels, but at a very slow pace. Last week’s $101/cwt. steer price was roughly a dollar higher than the week prior.
Fed cattle prices have stabilized and improved over the past three weeks with a $2.47/cwt. total increase for fed steers in the 5-area weighted average.