Last week’s market went the direction that most expected. What was not expected, however, was the quick pace the packer was able to push the market lower in the north. The low cash trade bled over to the south on Friday as well. The north had cash trades of $112.50 early in the week, with lower prices continuing later in the week. The south held on until Friday, but due to the lower prices in the north, couldn’t keep the cash trade from dropping to $111 in the south.
Fed kills continue to be large. Large kills and on time marketings in most areas should help stem the downward movement in the cash trade market. A lower market is not unforeseen, but it should remain small movements. More see-saw movement for the late summer markets could continue. Hang on for the up and down for a while.