Hulett: Fed Prices Take A Step Back

Buying for a holiday-shortened week, packers were not aggressive and prices suffered. This week should produce more robust trading.

CBP
CBP
(CBP)

The holiday shortened work week was evident in the number of cattle that packers needed last week. Most regions saw limited packer participation. The South saw their market fall a dollar to $141. This was due to low volume needed by the packer due to holidays and down time.

Cattle feeders in the North experienced the same pull back as the South. Cash cattle traded $142-$143 and dressed cattle $228-$232, with limited trade in the region.

There are several people in the industry who feel that this pull back in prices is short term. Packers have reduced their inventories and will more than likely have to come back and reload this week. Some competition between packers should help move this market higher.

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