Holding on for Steady | 12/18/24 Cattle Call

This week's cash cattle trade appears steady after three weeks of notable strength. On the latest edition of Cattle Call, Brad Kooima from KKV Trading highlights the dynamics of a challenging market:
Market Reversal: The downward price reversal on Monday has extended into midweek. This trend follows an increase in WASDE-reported corn ending stocks, which raises feed costs and impacts the cost of gain for cattle feeders.
February Discounts: February futures reflect a discount to current cash prices, signaling caution in the market outlook despite recent cash strength.
Consumer Price Sensitivity: Retail beef prices remain elevated. A key concern is the threshold at which prices deter consumers, potentially limiting demand in the face of rising grocery costs.