Mackey: Packers Aggressive Seeking the ‘Right Kind’
The July cattle marketing period has been everything but ordinary. For most it will not be forgotten. The tightness of supplies continue to be leveraged by the cattle feeders, competition on front-enders have pushed the market higher almost every week. This past week was no different.
After several weeks of marginal volumes packers entered the market more aggressive. As of Friday they had purchased 117,000 head cash and grids combined, look for that number to increase Monday.
The South saw activity at $180 per cwt., with a report of a regional paying as much as $187 per cwt. The momentum pushed North. Regionals quicker to the market trying to tie up the “right kind” had cattle feeders taking bids at $188-190. Ultimately, the majors would follow.
On the dressed side cattle feeders looked to take advantage of the $30 Choice-Select spread and would grid most cattle at $295 per cwt. On the week, the industry would trade $2-3 higher compared to the week previous.
Looking ahead, there will be lots of commentary from Friday’s reports. The highlight, no sign of herd rebuilding just yet. The tighter supplies will be with the industry for some time to come. Cattle feeders will continue to leverage the situation.
