Pre-holiday Cattle Trade Brings Unprecedented Results
Feeders were happy with the unexpected dollar higher trade the week before Thanksgiving. Most cash traders had anticipated steady to a dollar lower prices heading into last week’s trade. Packers were willing to push the market to gather inventory. The south traded cattle at $116.
All four major packers participated in last week’s trade, including Tyson for the Finney County, Kan., plant. Last week was the first cash trade since the fire that included purchases headed to the Tyson Finney County facility for harvest.
The north continued to out-pace the south, $184 dressed and $116 cash. The spread between the north and south has started to narrow. If the north can maintain their advantage, will be interesting to watch as Finney County begins to come online over next several weeks.
Holiday rib demand will slow in the next few weeks. As this happens will the packer continue to push the live price if demands slows? The board is telling us that they will continue to chase the market, but time will tell how it plays out.