Last week’s story was about competition, or the lack thereof. As the week progressed, the story of one packer extremely out of position would ripple through the marketplace. However, the needs of the competition wouldn’t be great enough to keep them honest. The result was a $185 cwt market south and $190 cwt live and $301 cwt dressed market in the North.
The outside trades of $186 in the South and $193 in the North are a telling sign that leverage is there for the cattle feeder. Given the chance to capitalize with multiple bidders the market should respond favorably.
Looking ahead, the packers would finish the week 14,145-head behind the previous week when combining the cash and grid trades. Gearing up for several big grilling weekends, one would assume packers should look to be more active in the market to fill their needs. Showlists will continue to be manageable and cattle feeders should look to push cash higher.
