Last week brought continued pressure on the cash fed cattle market in all regions. The south led the early trade once again with most trade starting on Tuesday at $123. By week’s end there was trade at $122 and $121. The north was also softer with $124 catching most of the cash trade. Dressed prices ranged from $196 to $200. All prices were $3 to $4 lower.
The downward market trend could, and likely will continue, if feeders continue to take advantage of the basis. The basis opportunity is going to make it very difficult to keep the cash trade steady to higher. The only positive that could slow the decline in the cash market is the large numbers moving out of feedyards for multiple weeks.
Higher harvest numbers may limit supply during the start of grilling season. Packers may not have the inventory around them that allows cheaper pricing, and the lack of numbers could lead to stronger demand for fed cattle.