Where Is The Cash Market Bottom?
Feeders in the South were able to keep their market mostly steady, with a few cattle bringing a little more than the week prior. Cattle traded from $93 to $96 with a few outside of that range.
The North found itself on an upward trend on marketings. The majority of the cattle in the North traded $95 to $99 live, and $155 to $159 dressed. Feeders in the North have positioned for a more current environment than their colleagues in the South by continuing to move more market-ready cattle each week. The North’s more current status has given it the opportunity to fight the market more than feeders in the South.
Each week that passes, feeders are getting more current with their market offering. The overall harvest numbers continue to inch closer to normal. Packer needs should continue to grow, therefore, the number of cattle needed each week grows. The steady increase in harvest numbers allows producers in the South to get in a more competitive market position, as in the North.
The industry will need beef demand to hold strong the remainder of the summer months. A slight dip in demand could open the door for excess beef and a continued sluggish market prices.
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