This week’s market promises to be interesting as feeders must decide how they want to trade now that the cash-futures basis is more favorable to feeders.
Last week’s fed cattle market saw a wide variation in prices between the south and the north, with some feeders willing to sacrifice one set of cattle in order to get another set in.
Did outside factors or did cash trade cresting at $110 create the sell off Friday? This week’s cash bids from the packer might be the best answer to that question.
Continued support from the board could yield higher cash prices for most producers. Packers need for higher grading cattle could also help push prices higher in the weeks to come.
Beef packers could be moving into a period with smaller inventories, which may prompt them to push prices higher. CME futures prices will again have an impact on the cash trade.
