“Feeder cattle are caught in a bottleneck of lower fed cattle prices, sharply lower cattle futures and record supply of competing meats as the entire livestock complex continues to struggle with these issues,” AMS analysts explain.
Cattle prices were mostly higher during the holiday-shortened week. According to the Agricultural Marketing Service, a light test of calves sold mostly steady to $10 per cwt higher at major auctions, while a light test of yearlings sold steady to $4 higher. Direct trade was firm to $3 higher.
"Purchasing and selling decisions need to be made in a timely manner and without emotion. Volatility in the cattle markets is not likely to decrease and the long-term outlook is bearish; however, given good cattle marketing and price risk management, profitability is achievable.”