After six weeks of the same $111 market, feeders’ expectations that an increase was imminent was realized last week with a $3 jump in the cash trade. Trade in most areas occurred at $114-$115. The market increase was driven by feeders holding out until the packer had exhausted their current inventory supply.
The additional dollars in cash trade could increase the offering from feedyards this week. However, with the packer cleaning up the show lists last week, trade will be dependent on what they need to fill orders. If they are current to good on orders, trade could be slow. If they need cattle we could see an increase in cash trade. Will the packer need as many this week as last? The answer to this question will determine the impact to this week’s market.
More upward movement in the market is anticipated in the feeding areas. However, movement may not come this week depending on packer inventory. Also, the increase in cash trade will likely not take the $3 jump we saw last week. Kill cuts should not be a considerable worry this time of year. Packers are into the time of year that filling orders is paramount. Let’s keep our fingers crossed they need more cattle to drive the market higher yet.