Last Week’s Gain May Be Short-Lived

Many of the corporate yards in the south are loaded with market-ready cattle. ( Consolidated Beef Producers )

The up and down of the market continued with a $1 upswing last week in the cash trade.  The south markets regained some of what producers gave up the week before trading mostly at $128.  The gut-wrenching conditions in the north has created great uncertainty, driving the market mostly to $129, and $208 dressed, with a few cattle trading slightly higher.

In the weeks to come, many of the corporate yards in the south are loaded with market-ready cattle, which may lessen the appetite of the packers to take many on or continue to be in the market. The premium the north commanded last week should stay strong, but they will see overall less numbers and much lighter weights.  The numbers could see an increase if producers move cattle sooner than later to get them out of poor conditions in the yards. 

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Positive Basis Leads Market Lower

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