Friday’s COF placement numbers provided a friendly lean to a market that has suffered consecutive weeks of falling futures and lower cash bids. Sellers hope to leverage the short week ahead with higher asking prices.
Last week saw several feedyards pass on steady bids from packers. Cattle feeders are counting on declining numbers of Choice carcasses to bring packers back with higher bids.
Packers were forced to add to their inventory and pushed prices $2 higher last week. The surprises in the Cattle on Feed report may offer a reason to push prices lower, yet feedyards maintain the upper hand.
Fed cattle trade posted gains last week, but the rally was not incentivized by wholesale beef prices, but rather pushed by limited supplies of ready cattle.
Packers narrowed the North-South spread last week and through a series of factors including the weather, have seen the marketing leverage swing in their favor.
