Fed Cattle Trade Finds Winners And Losers

Early trades in Kansas and Texas at $109 left a $1 on the table ( Consolidated Beef Producers )

Many feeders in the south chose the early opportunity to trade as they either wanted to move cattle or did not trust the market to be steady.  But the early trades in Kansas and Texas at $109 left a $1 on the table by the end of the week. All indications were that the packer was short bought. By the end of the week, feeders with front-end cattle traded cash cattle at $110 in the south. 

The north held fast on the belief the packer was low on inventory, and those feeders were rewarded with trade $3.50 to $5 higher. Feeders in the north were able to get $113.50 live and $180 dressed for the majority of the cattle with a few front-end cattle bringing up to $115.

Over the next few weeks patience and a calm trigger finger could be profitable to the cattle feeder.  The trade in the north has been strong and could pull the south up to a higher cash price.

The packer uses the nervousness of cattle feeders against them to keep the market under pressure.  The supply of market ready cattle is reaching a lower level for the year.  If cattle feeders can put up a fight, the time is upon them to rally the market.

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