Formula Cattle Continue As A Drain On The Market
The downward spiral in the cash cattle trade is ongoing as the number of market-ready cattle continues to grow. The pricing ranges in the South were thinner yet, with their trading window of live cattle trading between $1.00 and $1.02. A few cattle traded below $1.00.
The North’s trading range remained slightly wider. Cash cattle began at $105 early in the week and traded down to $98. Dressed cattle traded mostly in the range of $165 down to $158.
The cattle industry continues to work through the backlog of cattle due to COVID-19 issues. The big, over fat cattle are not as extreme as a few weeks ago. Showlists are already overburdened to date, as market-ready cattle add to the list weekly.
The backlog for the independent feeders is the inability to get cattle moved timely as the formula yards quickly fill the shackle space at the plants. Many of the formula yards are as current as one week out on marketing their cattle, while the rest of the industry has four to eight weeks of backlogged cattle to move out. The yards that have agreements in place with the packers are as much of a detriment to the cattle industry as what most want to put on the packer alone.
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