Cattle markets remain volatile, but cash prices are holding firm, according to market analyst Joe Kooima of Kooima, Kooima & Varilek in Sioux Center, Iowa. Speaking on this week’s Cattle Call, Kooima noted that despite sharp interday swings, cash cattle prices are steady to slightly higher.
Last week’s trade was briefly rattled by a false report of screw worm in the U.S., but the market rebounded, with some deferred contracts hitting new highs early this week.
“Cash is just fine,” Koima said, adding that the market has hovered near $245 in the north and south for several weeks.
One notable shift: 31% of last week’s cash trade was for deferred delivery, higher than usual, as packers offer bids several weeks out.
“With the futures discount where cash is at, you can’t make a better marketing decision than that,” Kooima said.
The latest USDA World Agricultural Supply and Demand Estimates (WASDE) report projected record corn yields, meaning feed grain supplies will be ample. Kooima said that’s helping support feeder cattle values.
“Everybody wants something to market that corn through besides just selling it to the elevator,” he explained.
As for this week’s cash trade outlook, early sales included $245 in the north and $237 in the south, mostly steady with last week. “The cash market is leading the charge right now,” Kooima said.
Cattle Call is a production of the Nebraska Rural Radio Association, sponsored by Wolf Auto – Small Town Strong.