Mackey: Feeders Win Late-Week Battle
A lower market sure, but establishing a late week trade, working bids higher off initial offers, and higher futures— is a battle won by the cattle feeders. Most regions saw increased competition with multiple offers. Late week bids of $170 per cwt. would eventually trade the volume of the cattle. Look for Monday’s reports to be more accurate. As it sits, the packer has purchased 61,000 fewer cattle when compared to the week previous.
The increased packer margin has encouraged a quicker chain speed. Harvest at 649,000 is 14,000 head bigger than the week previous. That speed likely will not be supported through the end of the year with two Holiday shortened weeks.
Many will look for this momentum to follow through into next week. There was talk, one major was out Saturday at $170 trying to fill needs and getting passed. Additional reports of another major scheduling cattle bought the previous day. Look for another shortened list and higher asking prices.
