Many feeders in the south were happy with the basis that was available last Tuesday and drove the accompanying $120 bid. Packers’ offer of $120 moved most of the available cash cattle in the south. The north followed with $120-$120.50 due to the pressure of trade in the south. This money moved most of the market ready cattle.
If basis continues to be positive, expectations should be managed that trade will continue to move down as it has over the past several weeks. Changes in the board could bring the only expectation of an upward movement.
The board was slightly more positive for cash trade at the end of last week. However, the basis will have to continue to narrow to make any impactful gains in the cash market. Our biggest opportunity is for a continued large harvest, to keep packers in the market for market ready cattle.