The board’s $.70 gain at close supported the cash and higher money cattle feeders thought close at hand on Friday. However, lack of packer support in the market quickly eroded the market for a negative outcome in cash trade.
In the south, one packer participated in competitive trade, while others cherry-picked the showlists, or failed to show at all. Lack of players forced feeders to take the $124 that was offered or carry cattle into the next week.
The north traded mostly at $124 with some cattle in the east bringing $125 and dressed cattle at $200.
Surplus packer inventory, and halted Saturday kill due to dwindling margins has stalled out the cash market. With the reduced trade numbers last week, packers are potentially using current inventory which could use up what they have on hand.
Cash could be at the top of its run, but if packers use their inventories over the next few weeks, and all return to the cash market to reload, we could still see a few more dollars added to the market.