Cattle feeders were hopeful that last week was the bottom of the decline in cash cattle prices. However, a negative corn report pushed the markets even lower.
The board began to tumble as soon as the corn report was released, and aided packers in their ability to buy cattle lower in the south. Most cattle in the south brought $109 per cwt with a few reported at $110. The north faired better with prices mostly $112 with a few clean up deals at $111.50, and dressed cattle bringing $178-$180.
Feeders are hopeful that over the last three weeks packers’ inventory has started to diminish. As committed numbers continue to fall in parts of the cattle feeding areas, packers could soon need to replenish their inventory pushing the need for greater buys in the coming weeks. Increased buy-in should indicate that we have temporarily hit the bottom and could expect a bounce in the market.