Very solid cash market fundamentals and a fully bullish technical posture are fueling the live and feeder cattle futures markets bulls, with no early clues of market tops being close at hand. Cash cattle trade last week averaged $165.02, up $1.30. We look for steady to higher cash cattle trade this week. Packers are in chase mode as cattle marketings remain very current. The noon beef report today showed Choice boxed beef rose $1.21 to $290.53, while Select gained 89 cents to $277.75, slightly widening the Choice/Select spread to $12.78. Movement at midday was light at 34 loads.
Lower corn futures prices today helped to boost the feeder cattle futures market sharply higher.
History suggests cash cattle prices will reach a seasonal peak in late March. However, this spring rally may last into late April, as sustained rallies tend to continue during years steer weights run below year-ago levels, which is the case this year. The latest steer dressed-weight reading came in at 906 pounds per head versus the comparable 2022 figure at 921 pounds. We believe a test of the all-time cash cattle market high may occur this spring.
**Call me for a free consultation for a marketing plan regarding your livestock or grain hedging needs.**
Peter McGinn
Account Executive
Walsh Trading, Inc.
Direct: 312-985-0931
Toll Free: 800-556-9411
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