Slowing the backslide of the cash market could help shift the feeders’ psychology toward the positive. By noon on Friday the Thursday trade in Texas at $99 was looking like a gift for the packer. With a few trading at $99, Kansas held on to enough front-end cattle to get steady money from the packer at $100.
The premium in the north continued to dwindle last week. Most cash trade was at $1.00, with dressed trade in the upper $150’s -$160 range.
The dollar threshold seemed to be a sticking point for many producers last week. The ability for most regions to hold part or most of their trade at that price last week could give the trade a needed boost. Navigating this market with a plant out of production has been a challenge.
However, producers are doing a great job staying current, and hopefully can continue to hold strong for a few more months. The Tyson plant getting back online will alleviate some burden. However, the beef industry still needs to address the problem of over-production in the industry, and the fact that negotiated trade is becoming a dinosaur in our business.