Mackey: Cattle Feeders Playing Catch-Up
The score for the New Year so far: Cattlemen 0, Packers 3.
Packers chalked up another winning tally this week getting the market to slide in all regions. It’s a hard game to play when the cattle feeder fights the elements, but it’s even harder when they start from behind each week. The packers have been utilizing their captive supply perfectly. They have been able to maintain their aggressive margin and as a result the cattle feeder continues to scratch break even prices.
The East was first to see any significant trade. New snow accumulations on top of already weathered cattle had feeders looking to trade. Action at $248 per cwt dressed, $2 cwt lower, would grab the volume. The weakness spread into the West where cattlemen would see trade $1 per cwt lower at $155 and $248 Grid bids.
Surprisingly enough, the South showed enough resilience to get the market into Friday, however, they were unsuccessful in advancing prices. Cattle feeders would find bidders at $155, also $1 lower vs the previous week. Trade so far the weekly National cash volume at 58,630 head, 7000 head fewer than last week at this time. Week to date Formula numbers come in at 212,579 head. Remember the point about starting from behind?
Better times are ahead. Cattle on feed report out today was right on the estimates. COF 97, PLC 92, MRK 94. Carcass weights out Thursday continue their decline, Steers -9 YOY and Heifers -8 WOW and -20 YOY.
A native of Torrington, WY, Brodie Mackey joined Consolidated Beef Producers in the spring of 2013 after earning his B.S. from the University of Nebraska-Lincoln. Brodie’s focus at CBP includes customer development, cattle marketing and evaluation in Nebraska, Northeast Colorado, South Dakota and Wyoming. For more about Consolidated Beef Producers visit here.
