Hulett: Packers All In, Market Stalled
Four packers participated in the South region last week, but cash trade remained steady at $114. Regardless of the number of players, none of the packers needed additional inventory that could have pushed the market higher.
With the market stalling out in the North, many producers chose not to move cattle, in part due to the market, but mostly due to the bitter weather conditions this week. Cash trade was $114, with dressed cattle trade near $182.
The board run on Friday has producers cautiously optimistic of a higher market this week. The bitter winter weather will take its toll on the feeding areas with reduced performance and lighter weights for the next few weeks. With fewer pounds of beef for the market, it could help hold up the cutout price.
Brad Hulett is Director, Customer Development & Regional Manager, Kansas at Consolidated Beef Producers , Inc.