Cattle traded in the south early in the week at $1 higher prices, suggesting packers were hungry for inventory.
If investors continue to find value in the live cattle market, producers may see a run in the board that could carry over into the live cattle trade.
Packers didn't show much interest in pursuing additional inventory last week, and the result was a cash market that traded $1 lower.
Last Monday the cattle market felt the same negativity as all other markets with the uncertainty of what may happen to global trade due to the effects of the coronavirus.
The market is sitting in a holding position in this mid $120’s range, and the movement is anticipated to remain flat for the short-term.
While the CME futures was under distress last week, hedgers were able to receive the best basis they have seen for several weeks and the result was a steady cash market.
Surplus packer inventories and halted Saturday kills due to dwindling processing margins has stalled out the cash cattle market for now.
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.