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Fed cattle momentum likely to carry into the new year

A livestock economist says the momentum behind the higher cash fed cattle prices is likely to continue in the new year.

University of Missouri’s Scott Brown says the path for trade agreements will play a big role in where prices head this year.  “It certainly is possible with strong exports in 2020 that we could keep cattle prices moving higher as we go through the year.”

Cash prices ended last week $2 higher for live sales in the South and $2 to $5 higher for dressed deals in the North.

He tells Brownfield 2020 is starting with cattle prices more than $2 higher than where they were a year ago.  “And look at that relative to a Choice Box Beef price that’s $6.50 lower and it tells you that packers are bidding pretty hard right now for cattle.”

Cattle prices have steadily increased over the past 10 weeks, put feeders in the driver seat – a scenario that has been seen in recent years.

For more analysis on what happened this week in the markets – check out the Weekly Livestock Market Update.