Cattle feeders are anticipating that the current run up in the cash market may have hit the peak and could plateau before long.
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.
Cash fed cattle prices are slowly but steadily pushing higher with prices in the North at a premium to prices paid to southern feedyards.
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.
Cattle feeders knew selling ahead of a short holiday week would create additional challenges for cash cattle prices and the ability to move cattle. Unfortunately, trade volumes met low expectations.