Many independent feeders are finding themselves fighting the same issues this year as they faced last year, yet feed costs are more than double what the were last year.
Last week only two days of harvest were considered cash trade. This lack of cash trade should give a clear indication that the corporate or “turn in” cattle are influencing the quick decline in the market.
One Kansas packing plant sat idle half the week for maintenance while others were reluctant bidders, leaving feeders with more cattle than available shackle space.
The spring rally in negotiated cash cattle prices continued last week as trade in the South developed early in the week with packers more aggressive than in recent weeks.
There appeared to be more cattle trade than what we have seen for several weeks, but with only one or two packers needing cattle it was difficult for feeders to push the market higher.
Packers, as usual, were in a position of leverage and needed very little cattle for the next week’s harvest. This continues to be the biggest problem with driving the cash price higher.
