Mackey: Show Lists Will Remain Tight and Green
Packers are experiencing an unprepared for shortage in the supply of market-ready cattle and the result has been a rocket to new cash highs.
The South saw trade at mostly $180 per cwt., with late reports of $182 peer cwt. with more trading volume over the weekend. The North would see a wide range with most of the action at $187 to $190 per cwt., and $292 per cwt. dressed.
Cattle feeders are responding as they should, with higher asking prices and a sprinkling of greener cattle. As of Friday, the national negotiated volume was 124,000 head, 21,000 head fewer than last week’s pace. One starts to wonder if the volume stays light due to the lack of available supply.
All eyes will continue to be on harvest. As prices continue to ratchet higher we know the packer will look to manage the chain speed to fix his costs and prices on the back end. The shortened kill week had a total harvest of 573,000 head, 52,000 head off the previous week and 35,000 head fewer the same week a year ago.
Looking ahead, the show lists will remain tight and green. Cattle feeders will continue to pull cattle forward to meet the demand for cash cattle. As a result, the summer marketings will become far more manageable than initially perceived.
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.
