Cattle feeders and packers were in a standoff most of the week with cash trading only moderate in all regions. Cattle feeders are in a good position as inventories and carcass weights declining.
Cash cattle markets traded modestly lower in another week of lackluster activity. Northern regions experienced adverse weather conditions added stress to cattle and reduced weights.
Cattle markets traded modestly lower as slaughter levels recovered from the holiday-shortened schedules. Wholesale beef prices traded lower for the week, but Live Cattle futures ended on an up note.
Construction is expected to begin this year for Cattlemen’s Heritage Beef Company, a 2,000-head per day beef processing facility south of the Omaha/Council Bluffs metropolitan area.
Cash fed cattle traded steady on the week, but further gains in the wholesale beef market gives cattle feeders the incentive to stick to higher asking prices in the short run.
Wholesale beef prices are running $20 per cwt. higher than the same week a year ago, with last week’s blizzard one factor in the rally. But retail demand for a shrinking supply will support prices into the New Year.
