Hulett: Has Cash Bottomed?

Cattle feeders in the South were able to get more cattle marketed last week than they have been accustomed to recently.  All packers were in the market and all but National Beef were bidding at $124.  It is also beginning to appear that we may be approaching a smaller offering of the higher grading cattle.

The North also feels that it has reached a point that it may stop the back slide of their market.  Most cattle brought $124 cash and $196 dressed with a few cattle trading at other prices. There was good clean up in many areas.  This should lead to producers being in a better position to be market makers instead of market takers.

The cash trader may finally be getting into a time period where they may be able to push the market somewhat higher.  The number of high end market ready cattle should be limited for the next several weeks.  If the cattle feeder has any opportunity to take any of the margin from the packer the time may be upon us.

Brad Hulett is Director, Customer Development & Regional Manager, Kansas, at Consolidated Beef Producers , Inc.