The most impressive action in this week’s cattle trade came in terms of the harvest pace. The packers harvested 671,000 head. That’s larger than most expectations by the tune of 5,000 to 10,000 head. We look for the harvest pace to be maintained one more week, as the packer looks to keep that holiday rib pipeline full in the last full harvest week of November.
Choice boxed beef lost $3.78 per cwt. last week. To put it simply— big kills, lots of beef. It’s no surprise with those big kills the packers are trying to maintain an adequate supply of fed cattle.
Friday’s volume has them purchasing 96,000 head at fully steady money. The southern feeder was first to trade at $150. When comparing the price action to the previous week, the buyers bid deeper on show lists that incentivized the steady trade. The premiums remained in the North. The northern cattle feeder traded primarily at $153 live and $242 dressed. Again, that market being supported by the higher grading cattle finding their way south.
The WASDE report out Wednesday showed a $2.00 price improvement in Q1 and Q2 of next year. The cattle feeder will continue to gain leverage with tighter fed supplies.
Looking ahead—The monthly Cattle On Feed report is out this week. It should continue to support the bigger marketings and show smaller placements.
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.
