Calf and feeder prices continued the steep climb higher last week, with few signs of slowing much at auction.
Weighted regional feeder cattle prices were $2-$5 higher than when last reported Sept. 27. Price trends for calves were even steamier in parts of the country, although AMS analysts point out 6-weights are under the typical seasonal price pressure that comes with supply outpacing demand.
At least for a week, cattle feeder got their wish with cash fed cattle gaining mostly $1-$2 at $129-$131/cwt. on a live basis and mostly $204 dressed.
“Trade chatter suggests that after topping the $130 barrier for cash fed cattle, traders will be assessing whether wholesale beef cutouts can advance enough to support a further advance,” says John Otte, Penton market analyst. “Market chatter suggests Thursday's cash trade at $130 is probably the most packers will pay for quite a while… Everybody in the industry was waiting for the price to hit $130. Once it did, everybody started to liquidate long positions. Packers will come in and say that cattle are too high compared to beef, so we're probably in for a two-to-three-week correction in the cash and the futures.”
Listen to the Cattle Market Weekly Audio Report every Saturday morning on the BEEF magazine website. This is your report for Saturday, Oct. 19, 2013.
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