Mackey: Signs of Growing Leverage
Cattle feeders got a late week win with $1 cwt higher trades in most areas.
The South was the first to see trade develop at $156 per cwt. The remaining cattle in the North would follow suit with the higher trade. The eastern feeders continuing to battle eroding pen conditions and escalating cost of gains, were able to keep their market steady and moved cattle at $248 dressed. All-in-all, most trade regions saw multiple bidders, a sign of the growing leverage as we work toward the spring.
Harvest came in better than expected at 659,000 head. That’s 13,000 bigger than the week previous and 4,000 bigger than the same week a year ago. No question analysts will continue to watch how the elevated kills coupled with the diminishing carcass weights will impact the market.
Looking ahead, frigid temperatures across most of the cattle feeding states looks to set it in. Cattle feeders will look for the market to compensate their performance loss. The Cattle Inventory report will be out next week. It should continue to tell the story of a diminished cow herd.
