Feeder and Live Cattle Markets Face Mixed Signals as Fall Approaches

As the cattle market reopened following Labor Day, feeder and live cattle futures weakened to contract low levels of resistance. The October feeder cattle contract ended on a down note at approximately $230, as the market continues to grapple with whether prices will rise this fall amid uncertainty over how many heifers will go through sale barns. A significant factor contributing to current market conditions is the deterioration of pasture conditions, which has led to expectations that some feeder cattle will be brought to market earlier. However, this impact is tempered by a large hay crop and the availability of cheap feed, both of which are already being priced into the market.