Cash Cattle: Is This The Bottom?
The South saw another wide trading range last week as prices ranged from $95 to $115 per cwt. for cash fed cattle. Cargill and JBS continued to be the only players in the negotiated cash market. National and Tyson finally began to take a few grid cattle from producers other than those feeders who have committed agreements with them.
The North was no different when looking at the trading ranges. Cash prices ranged from $95 to $115 and dressed cattle were $150 to $180.
Packers are beginning to get a few more cattle harvested. As the weeks go along this number should continue to rise. Packers are moving in a more positive direction for the independent feeders. By actively reducing the committed suppliers, the independent producers are moving more volume of their backed-up cattle through the system.
Regarding the backlog of cattle, we are by no means out of the dark and it will take most of the year to get cleaned up. As harvest begins to grow and prices continue to rise there may be some hope for producers.
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