Latest News From Brad Hulett

Packers were able to keep the market suppressed as the trade began last week at $2 back of the previous week.

Fed cattle trades were few and far between last week, with most bids lower and packers seemingly uninterested.

The past several weeks of trading in the fed cattle markets have shown that basis is becoming more important to many than the actual cash price.

Cash cattle prices have declined for several weeks, and the looming question for feeders this week is if $115 is the bottom?

Feedyards only saw one active packer bidding on cattle in the south last week.

The basis will need to continue to narrow for feedyards to see significant cash cattle price improvement.

Last week brought continued pressure on the cash fed cattle market in all regions, and the result was prices $3 to $4 per cwt. lower.

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.

Cash fed cattle prices finally turned higher in the south, following in the steps of the north to add $2 per cwt to the cash market.

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.

Cash cattle trade was like a roller coaster ride with disappointing downs, and faith restoring gains for the north.

The downward movement in the market feels like it should be short lived, but is dependent on how willing producers are to fight for a price.

Many of the corporate yards in the south are loaded with market-ready cattle, which may reduce packer aggressiveness.

The cash market took a step backwards last week as live cattle traded at $127 in most areas with dressed cattle bringing $204.

Last week brought one of the lightest trade volumes the market has seen for an extended time.

Steady money dominated the market for the sixth consecutive week.  However, winds of change are blowing and steady $111 could be coming to an end. 

The market proved more positive than feeders anticipated this past week after the bearish Cattle On Feed report coupled with a lower board.

If high beef demand, and steady to high margins continue throughout the summer, the packer will have incentive to continue large kills every week.

Last week’s cattle trade was once again a disappointment to cattle feeders.

Trade was spotty at best last week due to lack of total numbers needed by packers for the shorter holiday week.

Cash trade in the South was robust once again this week, with most cattle bringing $126, and a handful trading early at $125. The trade in the North was steady to a little weaker.

Packers could potentially find it challenging to obtain enough market ready cattle to meet their spring order demands.

This week should show us how willing the packers are to pull May contracts.

A midweek rally helped to keep cash prices in the north slightly firmer than those in the south.

The cattle feeders taking advantage of the positive basis, the trend for several weeks now, was again the catalyst for last week’s trade. 

The feeders’ ability to hold steady or gain in the market may not come until mid-April.

Beef demand continues to be steady to higher.