Fast Opening to Market Drives Cash Lower
Cash cattle trading started early last week as cattle feeders in Texas began on Monday by accepting cash bids a dollar lower. The lower trades set the market for all the other regions for the week. On the whole, the weekly price was $104 to $107, with most cattle trading at $105 per cwt., $1 to $2 lower.
The North was not spared from the down turn, with cash prices mostly $104 to $107 per cwt., and dressed trade ranging from $165 to $167.
Not all of packers participated in last week’s trade, but those that did appeared to want to take on good inventory. The increased inventory was likely a result of the combination of the needed supplies due to shorter buys in higher cash market weeks, and how easily the trade developed at lower money. Packers will buy for a short Labor Day week. How the market will settle will be determined on if the feeder can hold, or if the packer will force their hand with the need for fewer cattle.