In my opinion, not much changed week over week.  Both packers and cattle feeders are anticipated to remain in negative margins for the foreseeable future.  Stagnation is gripping the cattle market as there is evidence that the shifting, consumers have had to do, is now impacting beef demand.  Cattlemen have already entered into extensive negative margins, suggesting a great need for cattle prices to move higher.  Without strength in beef, I think this will be more difficult to achieve.  Input costs were no lower for producers and cash is believed having topped for the time being.  Consumer sentiment fell to a record low this week.  Again, this is not much change from last week.  Going forward, the Moore Research lower seasonal tendency ends at the first of May.  It is followed by an upward seasonal tendency into the second week of July.  I continue to anticipate further declines in cattle with the formation of a potential Head & Shoulders pattern forming. If the pattern were going to be text book, the right neck line would extend down to the March lows per respective contract month. It would then seemingly mark time into mid-July, having formed the right shoulder of the pattern.  Again, if text book, this formation would suggest to anticipate a significant move lower upon the completion of the right shoulder, leading into late summer and fall.  Other than this, the lower volume of inventory, and shift in production to longer time frames, is expected to keep producers having to bid higher for inventory.  What we don't know is if the beef market and consumer will be able to continue supporting the cattleman's venture.  I think some of the lower trading in cash is due to this aspect. 

Two weeks ago, produced the most beneficial basis spread and price in both cash and futures that has been available to date. This is believed as the best marketing price structure that will be available this year.  At the end of this week, traders were able to push futures higher, but the narrowing of the basis came from both sides of futures higher and cash lower.  Nonetheless, the higher futures trade this week allowed for maybe the second-best marketing opportunity for the year.  Unfortunately, I don't think many participated, reflected by the lack of open interest increase. There remains an emboldened outlook due to cattle supplies, but all other factors of beef demand seem to be hampered. 

Outside markets remained elevated through the week, with corn and diesel fuel higher.  Interest rates were no lower as US consumers grapple with core inflation, the persistent rise in the rate of inflation, and now, growing commodity inflation, that directly impacts consumers, literally every day.  Energy is anticipated to move higher.  Bonds are in a very sideways pattern with no idea as to which way the price of will break out.  The divisions between inflation needing to be lowered, and the President keeping it elevated through massive government spending and stimulation, is growing.  With the consumer sentiment index down, this is not difficult to see.