Cattle feeders in the South saw a glimmer of hope in last week’s cattle trade. Most fed cattle in the South brought $120 and region saw decent movement, but still not totally in the clear of the backlog.
Cash cattle traded steady, with cattle feeders in the South still needing a couple more weeks for good trade volume before they have any shot at being able to push the live market higher.
Feedyard show lists are declining but the day that most lists get sold each week is still several weeks away. Packers have begun to take Saturdays off which will not speed the recovery from the backlog.
A light volume of cattle traded last week as per usual ahead of a holiday-shortened week. Prices traded steady to slightly lower with packers more willing to accept lower-grading cattle.
Packers were forced to push the market higher in their quest to find higher-grading cattle last week. High=grading cattle are becoming harder to find with each passing week.
Cattle trades continued in a familiar pattern last week with prices steady to somewhat firmer late week. Feeders keep working to clean up backlog cattle.
The fed cattle trade last week continued down the same path that we have seen for several weeks. The upcoming weather forecast of hot weather will not be helpful for the backed-up cattle supply.
Cash prices held mostly steady last week, which could be a sign packers are beginning to get through some of the committed cattle and be in the market to buy more cash cattle from independent cattle feeders.
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.
Beef production slowed to a virtual standstill in the South due to extreme winter weather. Heavy demand on electricity and natural gas limited packers from running at capacity, and their need for inventory was limited.
Cash cattle markets continued its painfully slow climb higher last week, and most feeder anticipated the gain would be faster. Feedyard costs are on the rise, and any gains are most welcome.
Cattle feeders showed they have the resolve to fight for higher bids during last week's cash cattle trade. The market rallied $3 as the futures market continues to suggest better days ahead.
On-feed numbers indicate that packers could be running low on committed cattle, which should force some packers back into the cash market in the coming weeks.
Even as last week's prices were steady, it should be noted packers have been buying cattle for several weeks out, which is not behavior that would suggest packers feel that the market is going to be softer.
Cattle feeders found higher prices as 2020 came to a close, but their ability to push the market higher may hinge on how Live Cattle futures perform in the first weeks of the New Year.
All packers were active players in all regions in the days leading up to the Christmas weekend and prices rallied $2 per cwt. accordingly. Feeders reported good clean-up throughout the region.
Cash cattle in the South traded steady, and futures contracts had a decent week but packer needs during the holidays seem to have more of an effect than the futures market.
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.
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.
The early trade released any pressure on packers to acquire available inventory and made it easier for them to achieve their buy. The majority of the cash trade in the South was from two packers.
Packers were fairly aggressive in their drive to increase their inventory. Cash traded mostly on Thursday, but packers took on additional cattle Friday at steady money.
Packers took on more inventory last week, which allows them to sit out and leverage the extra volume to push the market lower with potential extended delivery periods.
Cash cattle prices moved higher again for the sixth consecutive week, with the North still trading premium to the South. Feedyards in the South appear to be cleaning up faster than expected.
Cattle feeders saw continued higher prices in the cash market last week with cattle in the South trading at $99 to $100, with the majority of the cattle going at the higher end.
Cattle feeders in the South were able to keep the market mostly steady to higher for the week. Most cash trades were $95-$96 with producers finding themselves in a position to pass on lower bids for front end cattle.
The more current status of feedyards in the North has given the regions feeders more opportunity to fight for higher market prices than feeders in the South.
Packers should be back to six-day work weeks now that we are through the July 4th holiday, but an abundance of protein in the system should be expected to hamper cattle markets this summer.
