Cash Market Tips Backward
The cash market reached its tipping point and began backward movement. Late Thursday trade of $123 in western Nebraska and Colorado started the backslide, with more trade in the north carrying into Friday at $123 and $122. A planned scheduled down time at one of the packer’s main plants in the west is thought to be one of the catalysts for the backward slide in the market. The lower cash trade continued to bleed over into the south with trades of $123 in Kansas and a few trades in Texas.
Will this down turn in the market continue or is it short term? All indications point to a short-term downward movement in the market. Once the maintenance project in the west is completed, and as pen conditions continue to improve in parts of Nebraska, as well as Kansas, the market could see a rebound of a higher cash trade. The significant loss of pounds given up during several winter storms throughout the cattle feeding region will also help with this rebound in the weeks to come.