Feeders have waited to see this week’s positive upswing in the cash market. Cattle in the south traded for $106 to $108. In the north cattle brought $106 to $107.50, with dressed cattle bringing up to $170. The majority of the cattle in Kansas traded on Wednesday at $106.
Many feeders felt that cleaning up the numbers was going to need to happen to get any leverage back into their hands. A positive note to the trade was that the packer was willing to take on some extra inventory for the first time in several weeks. By last week’s end, packer’s pushed the market to $108 in multiple areas, and continued to pad their inventory.
Going forward, it appears we should have made it through the wall of cattle that was projected in late June, early July. In doing so, show lists for the rest of the summer should continue to lighten up. If high beef demand, and steady to high margins continue throughout the summer, the packer will have incentive to continue large kills every week. How much upside is in this market will be driven by available supply of cattle in the feedyards. Most agree, it feels like the cash market may have turned a corner, and we should have opportunity to put dollars back on.