Beef packers would like to own more cattle but they’re afraid showing their hand will only raise asking prices. Moderate trade occurred in all regions at higher money but sellers have the stronger hand and are willing to wait for packers to up the ante.
Cattle sold in the North at $146 to $148 per cwt. live and $230 to $232 dressed, mainly $1 higher than last week. Cattle sold in the South at $145 per cwt., also $1 higher.
Current prices mean packers are paying roughly $400 per head more for finished cattle than the same week a year ago while wholesale beef prices are roughly $42 per cwt. (15%) lower. As a result, packer margins have evaporated, and leverage has shifted to the feeder.
Feeder cattle traded steady to $4 lower, and calves sold steady to $4 lower.
