Cattle feeders were able to stick together, using their leverage to gain traction and increase the market. Cattle in the South brought up to $115 per cwt., with cattle in the North $115 live and up to $184 dressed.
Over the past weeks, show lists were not overly long, yet, packers had the upper hand with their forward bought inventory, driving the market down to $110. With inventory less available, the feeder was able to use that as leverage and take advantage by gaining $5 back in the cash trade.
Currently in the yards, it feels that packers are still playing the need for inventory, week to week.
The feeders are optimistic for the trade opportunities over the next couple of weeks. Time will not only sort out the perception that the $109 to $110 market was low, but also, possibly allow anticipation of a potential rebound in the market. Long term or not, a $5 gain this week reminds us of what happens with healthy participation by the packer.