The Cash Cattle Market Demands Attention
By ShayLe Stewart, DTN/Progressive Farmer
The momentum that's building in the live cattle market is fueling excitement in cattlemen across the nation. During the past month, the market has had wins throughout the cash cattle market in terms of price levels reached and volumes sold, as well as in the processing sector as slaughter speeds have been extremely aggressive.
There are always unforeseen circumstances that can throw a curveball into the marketplace, but as demand sits, the live cattle market stands an excellent chance at keeping this heightened energy through the spring of 2022.
These days, it's almost costly to not keep an eye on the horizon and try to be one step ahead of anything that's to come. But in doing so, cattlemen have at times overlooked the importance of the cash cattle market which negatively serves all involved. I thoroughly understand that grid and formula deals hold an undeniable portion of the market, but just as it would be frowned upon to think of a complex without grid and formula deals, it's foolish to think of the fat cattle market without having a lively and healthy cash cattle trade.
The successes of the cash cattle market during the last month cannot be denied nor overlooked. Breaking down November when the market's charged ahead with unwavering support, both cash cattle volumes have risen as well as cash cattle prices. For the week ending Oct. 29, there were 103,877 head of cattle traded in the cash cattle market and prices jumped $2 to $4 higher. In the next week, ending Nov. 5, there were 96,867 head of cattle that traded through the negotiated cash market, and prices jumped $2 to $5 higher. In the next week, ending Nov. 12, there were 118,797 head of cattle that traded through the cash market, and prices climbed $3 to $4 higher. And, for the week ending Nov. 19, 2021, there were 116,750 head of cattle traded through the cash market, and cash prices jumped $1 to $3 higher.