Mackey: March Madness Brings Record Cash Prices
If cattle feeders didn’t believe in March Madness before, they do now after last week’s trade.
Negotiated cash prices set new highs in all feeding regions but, meanwhile, futures, harvest and the wholesale cutout would all suffer losses.
Packers have been bound-and-determined to keep the lid on this market. Reduced harvest hours and relocating cattle have not kept them from scrambling for inventory. Once again increased participation led to higher asks and a wide range of trades.
Most of the business concluded on Thursday at higher money. The South was quick to move at $188 cwt. live. Many were suspect with the ongoing situation at the National Beef plant, but additional bidders led to a better-than-expected clean-up. The North would see the widest range in sales. Primarily $190-191 cwt live and $302 cwt dressed would move the cattle. As the day drew on, reports of trades beyond the range continued to flow in. Packers determined to fill their needs would trade cattle as high as $306-310 cwt! As of Friday, 21,000 more cattle traded than the week previous. Perhaps packers doing prep work for bigger harvests to come?
On the Harvest front—after Saturday Week-to-Date harvest was published at 598,000 head. That’s 3,000 behind a week ago. This is partially interrupted with the hiccup at National. Most will be looking for that to be made up this week.
Looking ahead, the industry will be digesting Friday’s Cattle on Feed Report. The Placement number upset the apple cart coming in at 3% larger than the pre report guesses. The long and short of it should have no immediate implications. Numbers will remain tight as we work into spring demand. Cattle feeders will continue to press their asking prices higher. Meanwhile, packers will look for avenues that can get them to the numbers later in the season.
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.
