Beef packers could be moving into a period with smaller inventories, which may prompt them to push prices higher. CME futures prices will again have an impact on the cash trade.
The rally in the cattle markets continued this week with solid gains in both cash fed cattle and the boxed beef cutout. Cash cattle prices are now at a level not seen since late June.
In the last CAB Insider, we reported on a rapidly retreating fed cattle market scenario. However, much has changed in the two-week interim.
Closeouts on cattle and hogs marketed last week remain modestly profitable for the sixth consecutive week, according to calculations by Sterling Marketing.
Cattle markets entered November with solid gains across all sectors. Fed cattle rebounded with higher prices in all regions while feeder cattle jumped $2 to $7 per cwt.
Cattle and hog finishing margins remain positive for the sixth consecutive week, but cash prices for both declined modesty last week and margins eroded.
Last week’s early winter storm exposed cattle to cold, wet conditions, but also brought much-needed moisture to the nation’s wheat belt reviving prospects for winter grazing.
Wide regional variations in prices for fed cattle were found this week and the cash trade was slow to develop. The season's first winter storm affected the sales and movement of both fed and feeder cattle.