AgDay Cattle Analysis: “Strength Down the Road”
Cattle Markets 090420
Carcass weights seem to be rising and livestock analysts are saying that is likely to continue.
According to Drovers, Tuesday’s USDA data shows average weights at 885 lbs., 3 lbs. higher that the previous week and 27 lbs. higher than last year. The additional tonnage is expected to remain a burden for the cattle markets throughout the fall.
“I’ve thought all along if you can work through some of these bigger weights, later on down the road, some of the replacement numbers we saw in there in the springtime and early summer timeframe would end up coming to pass,” says Matt Bennett, a commodity analyst with AgMarket.net.
As for the cattle markets, the cattle closed moderately higher today after selling-off most of the week.
“I [have to] think you’ll see the December contract go back up into the low $1.10s anyway,” says Bennett. “As far as February cattle go, I think you’ll get an opportunity there as well to see some strength down the road.”
Farm Journal editor and AgDay anchor Clinton Griffiths discusses the cattle market with AgMarket.net commodity analyst Matt Bennett.
