The cash market finally turned in the south. Feeders in the south followed in the steps of the north to add a $2 per cwt to the cash market. The south traded at $126 with most of the north able to get $130 by Thursday. Trade volume was larger in all areas with the rise in cash price.
After the large trade last week, are showlists reflecting the anticipated small carry over expected, and will this help continue to push the market higher? Sufficient cattle are still available in the south to supply the packers needs, until harvest numbers increase for summer demand.
The north likely will remain relatively short on market ready cattle. Expectations are that the north will remain short until their next calf crop, which has been reduced in numbers and delayed by weather, is ready to market. These calves could begin showing up prematurely due to this run in the market.
The Cattle on Feed report (COF) that came out last week, was much as expected. The expected COF news, and the continued shortness of supply in the north should continue to propel markets for another week.