Brad Hulett: Cash Backs Up

Cash prices traded lower ( CBP )

Packers' lack of need to take on additional inventory allowed the cash market to lose another dollar.  Cash trade in the South fell to $121.  The North reported cash trade of $121 to $123  and dressed trade at $193 to $194.

Daily committed numbers continue to come in shorter.  Potentially the lack of trade involvement could be a sign that packers are using up their inventory.  As the market continues to slip we could see packers willing to give up inventory. 

As we move toward months of larger supplies, will the packer need to buy up inventory? Packer margins will determine how hard they are willing to run.

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Feeder Cattle Higher, Fed Cattle Lower