Packers have had issues with worker absenteeism at their plants, which has again created a backlog of market-ready cattle. Packers used that fact to their advantage last week and slashed cash fed cattle prices. Cattle in the South traded $135-$137 with most cattle trading on the lower end of the range.
Cattle feeders in the North also saw prices slip last week. Live cattle traded mostly at $137 and dressed cattle traded $218 to $220. Feeders in the North had not been backed up like feeders in the South, which keep them from having to chase the market any lower to get cattle moved.
If packers can get employees back to work this week, then we should see a rise in fed cattle harvest. This will help cattle feeders clean up the backlog that some of them are facing, and hopefully put the brakes on the backwards cash slide.
