Cash cattle prices improved $1 per cwt., helping lift feeding margins to $118 per head, according to the Sterling Beef Profit Tracker.
Cattle feeders saw continued higher prices in the cash market last week with cattle in the South trading at $99 to $100, with the majority of the cattle going at the higher end.
Packer’s had a stronger presence in last week's market, but not enough to make up for the erosion of the futures markets.
Negotiated cash cattle prices pushed higher again for the sixth consecutive week as feedyards have gained some market leverage with declining supplies.
The upward trend in cash cattle could continue through the holiday rib demand, with Choice product being in short supply.
There are several factors that continue to support the feeder cattle market.
Fed cattle prices are now five-to-six weeks into a rally off the lows set in early October. The rally in feeder cattle is less steadily strong but is still decidedly off seasonal lows.