Last week’s fed cattle action would lead many to believe the fall rally has begun. The South, consistent with their early week activity, sold cattle Wednesday at $182-183 per cwt. As the day would work on it was evident the supplies have tightened enough that packers continued to push on remaining cattle. Thursday’s bids would improve to $184 per cwt.
The North continued to hold to their higher asks and eventually it paid off. As many as 3 packers would pay $185-186 per cwt, similar moves were made dressed at $292 and eventually working to $294 per cwt. A few outside trades reported even higher money at $187.
The price moves of $2-3 higher for the week traded 130,193 head, with many of the cattle traded for seven to 10-day delivery. That number will likely improve on Monday’s morning’s report.
Looking ahead, the fed cattle rally was not incentivized by the boxes, trading mixed on the week, but pushed by limited supplies. Demand for inventory will continue to be the topic for packers. Cattle feeders will look to advance prices higher as packers will look to shuffle cattle around to meet their needs.
