Hulett: Lack of Participation Slows Cash
Last week feeders in Kansas saw one of their main packing plants down for three and a half days for maintenance. This did not bode well for feeders, thinking that the market in the South could be up three to five dollars on the week. When packers did begin bidding, $121 was the best of it, and packers stayed out of each other’s way so they did not drive cattle prices any higher. Feeders in Texas had an even tougher time getting to the $121 with even fewer packer needs, and more cattle on the list than what feeders could find homes for.
The lackluster trade in the South carried over to the North. Cash trade ranged mostly from $123-$124 and dressed trade hung mostly around the mid $190’s. The North continues to be the driver in the market, and will be for some time, until they come into more numbers to market.
Feeders should still have some room left to push the cash market higher. The one thing they need to keep an eye on, is how many contracts will packers have to get through the system the last week of the month. If this number is larger than expected, it could result in a steady, or not as high as expected market.
