The temptation of a wide basis was all it took for packers to get the market started in the south last week at $115. Unfortunately, in today’s cash market it only takes a few cattle trading to set a market that no one can get around. Due to this issue most feeders had little choice but to follow along.
The north found itself in the same situation as the south. $115 was as high as they could push the cash market. Producers were only able to secure $185-$187 dressed.
If there was ever a question of how much outside influence there is on the cattle market it was completely exposed this past week. As concerns and uncertainties grow regarding the coronavirus, it continues to put additional pressure on the cattle markets.
This will put a strain on all cattle producers, with no one knowing when things may straighten themselves out. Producers may not like where the market has headed but keeping to the course may be the best plan for now.
Related stories:
