Overall, the cattle market was up about $1 this week with it hitting a high a 137.400 in the August contract. Food prices increased 10.4% from a year ago and the US exported 321 million pounds of beef in May which is an all-time record. There is a focus on the exports now due to the fact of surging domestic prices. Choice beef cutouts remained around the 268 level for the week, with the cutouts closing today at 268.57 (up .82 cents from yesterday).
October Feeder cattle seemed to breakout this week with a small retracement the past two sessions closing at 182.45 and, in my opinion, the feeder cattle market is setting up for another move to the upside and possibly trying to test the February highs in the $188-$189 level.
The December Live Cattle chart seems to be setting up similarly for another move higher as well, in my opinion. There has been a large volume of contracts traded on Tuesday when the WASDE report came out, with a direct correlation to how the market traded, while the past two sessions had volume that was less than half of the prior 3 sessions from earlier in the week. If the heat that is expected to sweep through cattle country comes to fruition, and weights continue to decrease, I suspect that Dec cattle continues to climb higher and try to break through the 149 level.