Cash cattle trade began on Tuesday last week, but bids were scarce even at lower money. Some feeders held strong for higher money, but with the decline in the CME board a higher market never surfaced.
Negotiated cash cattle traded started at higher money mid-week, but in their rush to move cattle some feeders agreed to lower prices and the week ended on a softer note.
Cash fed cattle began trading early last week, $1 higher than the week before. Packer margins continue to widen with each passing week, and feedyard showlists called manageable.
Feeders in the South hurried to sell cattle on a Tuesday-steady bid. The early trade made it easy on the Packers who seemed more than willing to take on the inventory at steady money.
The South saw another wide trading range last week as prices ranged from $95 to $115 per cwt. for cash fed cattle with just two packers active in the negotiated cash market.
Light cash trade continued with a wide price range. Two of the major packers were active in the market, with one actively making an effort to support prices.
Packer margin is significant. However, why is packer profitability the only focus, and we are not as outraged about the other “elephant in the room” issue within our market?
Packers were aggressive in obtaining inventory to start the new year, and the result was a cash cattle market that gained $2 in both the north and south.
