Last week brought one of the lightest trade volumes the market has seen for an extended time. Most packers pulled all scheduled harvest last Saturday because of the onset of another winter storm. A few cash cattle in the south traded at $126 with the north trading a few cattle cash at $126-$127, and dressed at $202. The run in the board made it difficult for most feeders to sell with a negative $2.50 basis, when it appeared that we were on the verge of turning the basis positive.
Feeders will spend another week cleaning up after the latest winter storm and determining the negative impact to gains. Packer should have to replenish inventories this week, due to the lack of trade last week. With the cattle on feed report being mostly friendly, combined with loss of pounds to sell because of another winter storm, all the signs indicate continued upward momentum in the market.