The cattle market continues to take the brunt of all the headline hunters. Futures tumbled Friday and the packers incentive to buy cattle at steady money went with it. Softer bids early in the week became much more advantageous as the basis would increase.
The North would see dressed sales from $293-295 cwt with live business concluded at $184 and $185 cwt. Evidenced by the numbers cattle feeders will still be reluctant to conduct business at the current levels. Friday would show NE and IA combined, with 8500 fewer head than the previous week’s total. The South would move cattle at mostly $182 cwt Thursday. What was remaining unpriced Friday morning, would eventually exchange hands at similar levels.
Harvest totals for the week printed at 603,000 head—off from the previous week, but still larger than expected.
Looking ahead, the Canadian fed market is now premium/par the US market. One would expect the numbers to the Northwest to drift lower out of Canada and more native cattle to be hauled away from the Midwest to meet the needs. Cash marketers will look to stop the decline in prices. Packers will continue to keep bids close to their chests and play off the uncertainty presented with the futures.
