Cattle trade this week ended slightly lower for August feeder and fed cattle. And the cash trade should hold steady next week, but may go $1 lower, says Justin Gleghorn, market analyst at Brock Thompson Trading in Amarillo, Tex. “We expect the cash market continue to soften up going into the Labor Day holiday.”
But overall, the cattle market has several favorable factors impacting it. First, low supplies and slowly improving demand both domestically and abroad should continue to strengthen prices down the road. USDA data shows export demand to hold for the year and the U.S. Meat Export Federation reports that U.S. beef sales overseas continue to grow. As always, outside economic factors will continue to influence day to day trade.
"With the domestic economy still struggling, strong performance in the foreign markets is really a shot in the arm for the U.S. meat industry," said Jim Peterson, cattle producer and chairman of the USMEF, earlier this week. "I am especially encouraged by the strong prices our products are commanding overseas and the excellent return this is delivering to U.S. farmers and ranchers."