Ongoing pessimism surrounding cattle markets—a sense that the other boot is about to drop—is becoming more difficult to support in the wake of cash trade this week, as well as improving technical data.
Steers and heifers at all weight classes traded steady to $5 per cwt higher, according to the Agricultural Marketing Service (AMS). There were instances of $6-$7 higher for lightweight calves in the north central part of the country.
“Demand was good for feeder cattle and very good for grass cattle with the right condition,” AMS analysts say. “Feeder Cattle futures saw triple-digit gains throughout the week, which provided support. However, buyers continue to be very cautious on current purchases, as slaughter cattle futures for the summer months are sharply lower than the cash market.”
The CME Feeder Cattle Index closed $2.05 higher for the week at its highest level since the end of January.
Listen to Wes Ishmael's Cattle Market Weekly Audio Report every Saturday morning on the BEEF magazine website. This is your report for Saturday, Mar. 18, 2017.