It’s been a minute since my last entry. During that time Bird has been the word. Nervous about consumer confidence, industry experts announced they’d be testing product. This announcement sent the market deeper into volatility. However, on Wednesday much needed news would surface. The samples were negative and free of any concern. Packers sprung to action forcing a trade late and at higher money.
The North would see the first of trade. Regionals pushed the market to $187 live and $295 dressed. As they would begin to gather a few, at least two majors would step up their initial bids to $295 and $296 to stay in the conversation. Trade would wrap up at firmly higher money. The stronger futures froze the southern market. Cattle feeders would raise their asking prices and packers would dig their heels in deeper creating a late week standoff. Ultimately, cattle feeders rewarded the market and sold cattle at $184-185 cwt live. Call it $2 higher than the previous week.
Many will await Monday’s totals. As it sits packers are still 26,000 head behind the week previous purchases. As the harvest schedules have slowly gained momentum and show lists continue to move inversely, harvest last week was 619,000 head or 6,000 head bigger than the week previous and just under last year. Packers are now finding themselves trying to bridge the gap between yearlings and calves. This is contributing to a leverage shift, needing a bigger inventory to support the harvest, yet smaller lists are creating a challenge. Cattle feeders are slower to accept the bids and packers are beginning to be more aggressive on lists and areas not normally traveled. Look for this to continue for the next couple of weeks.
