Feeders in the south along with most places in the north were able to move cattle at $108 on Friday. Trading a dollar stronger than the previous week, feeders proved that holding was the right decision.
The question to be answered this week, is this higher market a one-week rally, or a new direction for the market? Several packers appeared to have exhausted inventories by not buying cattle the week prior. With the packer margin staying very positive at this time, and most sectors of retail beef strong, a huge incentive remains for the packer to run hard.
Another factor to keep in mind as we go forward is how are feeders with regards to numbers. Has the north moved most of its large numbers before Texas gets into their wheat cattle? This could pose a problem if both regions are in large numbers at the same time.