Cash Market Makes Big Recovery

Although the rising cash price will eat into their profits, packers appeared to take on extra inventory. ( Consolidated Beef Producers )

The cash market made a huge rebound in all areas last week. The South traded $5-$6 higher at $112-$113. The north was able to get up to $114 cash and $180 dressed. 

Brad Hulett
Brad Hulett, marketing rep., Consolidated Beef Producers, Inc.

Although the rising cash price will eat into their profits, packers appeared to take on extra inventory. Cash numbers should continue steady to lower as the summer moves along. A strong cutout could give packers incentive they need to remain aggressive in the cash market, and to take advantage of large profits.

Smaller showlist numbers potentially put feeders back in a favorable position in the cash trade, as they begin to receive their first round of grass cattle deliveries. Speculation is that by the end of summer, we could test our lows from a few weeks back. Today, cattle feeders are current and in a good place, and as always, we should check our road map ahead as available cattle numbers start to climb again.


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