Hulett: Cash Cresting?

Cash prices traded higher
Cash prices traded higher
(CBP)

Most cattle feeders in the southern region waited until late Friday morning before trading cattle.  Feeders were optimistic that a chance, if slim, was available to push the market higher than $110.  However, once the board broke, feeders saw their optimism vanish quickly with trade staying at $110.

Producers in the North saw their market trend with that of the South.  The North cash trade topped out at $110 and dressed trade was in the low $170’s.  Although the price had a significant jump, many of the cattle were sold with additional time, giving the packer a healthy inventory.  The additional inventory could give the packer leverage to work the cash trade market lower.

Did outside factors or did cash trade cresting at $110 create the sell off Friday?  This week’s cash bids from the packer might be the best answer to that question.  As the year winds down, it appears that the packer will be back in the driver’s seat with producer having very little leverage opportunity.

Brad Hulett is Director, Customer Development & Regional Manager, Kansas at Consolidated Beef Producers , Inc.

Related stories:

November Cattle Rally Continues

 

 

Latest News

Wholesale Beef Higher, But Cash Cattle Struggle

Beef packers continued to maintain their strangle-hold on the market this week. Rising boxed beef cutout prices will pad packer profits – likely to exceed $400 per head.

What Technology Would Catch Your Eye If You Won the Lottery?

The latest Drovers Pulse Poll found calf care would take the top priority if cost wasn’t an issue.

Biden’s Top Trade Pick Vows to Stay Tough on China

Congress got a clearer view of President Biden’s trade agenda this week as the Senate Finance Committee questioned Katherine Tai, Biden's nominee to serve as the United States Trade Representative.

Effects of Transporting Cattle on Auction Prices

Researchers at Kansas State University analyzed 211 livestock video auctions and determined that trucking distance has an effect on the price that buyers are willing to pay.

Targeted Online Learning on Biosecurity

To further support cattle producers across the country the Beef Checkoff-funded Beef Quality Assurance (BQA) program has released the first in a series of Advanced Education Modules.

Beyond Meat Clinches Coveted Deals with Mcdonald's, Yum Brands

Plant-based meat maker Beyond Meat said on Thursday it has signed multi-year supply deals with McDonald’s Corp and Taco Bell owner Yum! Brands Inc.