A hand full of feeders in Kansas chose to keep the market depressed once again. Trade started on Tuesday at $124 and bled on into Wednesday morning. These cattle were rumored to ship the same week with some being shipped this week.
With feeders willing to sell cattle to ship the same week shows how willing some feeders are to sacrifice one turn of cattle just to get another in. With the lack of cash trade in the south one org can set the market for everyone in the region. Texas was forced to follow along at the $124 with very little participation from most packers.
The north once again showed everyone how to take advantage of your situation and leverage your position. Holding out till Friday they were able to command $127.50 for most of the cattle in the north. The numbers in the north continue to be short and have the ability to drive the market.
Could this be the week that the market turns around in the south? Only time will tell, but if the handful of feeders that have been willing to depress the market would fight we could see quite a turn around in the next few weeks.