Packers have desire to keep inventory
With packers eager to push their purchased cattle inventory higher, cattle feeders in the south moved the cash market higher by $1 to $120. Some owners were reluctant to let go of their complete offerings, choosing to wait for next week’s trade in anticipation of a positive February board.
The north continued to trade live cattle at $121 and dressed cattle at $192. Feeders in the north have been able to keep their premium over the south even with the Choice/Select spread retreating rather quickly.
Over the next several weeks most feeders will have their sights set on where the February board will trade. As feeders look at the board on pricing cattle, and as the packers work through current inventories, both will evaluate their opportunities for the short-term.