Absenteeism at major packing plants due to coronavirus has again helped create a backlog of market-ready fed cattle. Packers used that fact to push fed cattle prices lower last week.
Cattle feeders anticipated cash cattle prices would be softer since packers were working with holiday-shortened hours last week. Packers will need cattle this week to fill full-week schedules.
Cattle feeders found softer demand from packers last week, resulting in a $2 per cwt. decline in cash prices. Holiday slaughter schedules the next couple of weeks will likely prevent any price gains until the new year.
The week before a holiday is not usually ideal for pushing the market higher, but last week proved to be just the right combination to support a rally.
The cash fed cattle market found its way higher again last week, with four or more packers in the market all fighting for cattle every week for the first time in two years.
Last week cattle feeders found themselves in an environment they had not seen since August of 2019. Four packers were in the market competing for the cattle that were available on the list.
