Mackey: More Pounds in the Pipeline
Right on point. Packers opened up their harvest for the first big weekend of holidays. As the harvest paced opened up, the cattle market came up for air. For many weeks the sub 630,000 head chain speed allowed packers to gain control of the market pushing up the price for their product and building an inventory of cash cattle. This past week they outpaced the industry estimates at 646,000 head, that’s 23,000 head bigger than the week previous and just 5,000 head off last year. The bigger kill will push a few more pounds into the pipeline and the cutout should see some reprieve.
The cash market in the North held steady with the previous week’s lower range while the South lost ground widening the spread back out to $6. For those still searching what the cost of true competition is worth— it’s worth about $6 cwt. Many reports of packers in the South began the week with diminished needs by the amount of turn-ins and grids they had at their disposal. Meanwhile, the North saw at least 3 packers bidding at the same money and 2 bidding with timely pick-ups. Steady to smaller show lists coupled with Friday’s volume report at 118,310 head that’s 17,616 head off last week, most are already calling for another steady to stronger week ahead.
Looking ahead, packers will continue to look into the summer for increased numbers. Cattle feeders will continue to utilize basis scattering their marketings out into an earlier time period.
