Mackey: Weather Provides Motivation to Settle for Steady
A year ago there was an abundance of commentary on weathered cattle and tough pen conditions, and how at times it would be the motivation for sellers to take the market. It’s eerie how not much has changed in that sense. With a harvest under control and being tightly managed by the packer, many feeders ultimately settled for steady to keep cattle moving ahead of the weather outlook.
The biggest moves were made in the North. Regionals eager for inventory were quick to establish the reminder that if cattle feeders aren’t taking multiple buyer calls a week, they’re leaving money on the table. Bids at $175 cwt live and $275 dressed would establish quite the following. At least one packer followed before acquiring their needs. As the week progressed sales would soften off the initial $175 cwt. The remaining majors would enter the market at steady to something slightly better to move the remaining show lists, filling their needs in the South and willing to freight them in to pressure the market. Bids of $173-174 live and $273-274 dressed would finish the trade North and South.
Looking ahead, all eyes will be on the weather maps. Many are calling for winter weather to significantly impact large parts of the cattle belt. This indeed should hinder performance and should take a few pounds out of the market. Perhaps, this could be the remedy for the falling cutout. Many will look to price cattle higher to compensate for their loss of pounds.
