Mackey: Steady Leaves Many Cattle on Showlists
Cattle feeders found little motivation in the packers’ bids last week. Friday’s trade numbers totaled 55,692 head cash and grids combined. That’s nearly half the size the trade has been running for the last few weeks. Many will look for more inspiration as tighter numbers become the common theme working through the remainder of the month.
The North traded at $185 cwt. live and $292 cwt. dressed. That’s steady to firmer compared to last week. The south traded par at $185 cwt. However, many cattle remained on the showlist as owners were unwilling to capitulate at steady money.
Cattle feeders are aware of the strong seasonal as the industry works into the Thanksgiving Holiday. Unique to this year, unlike years previous, the packer has been in preparation for shorter numbers and has successfully kept his position for several weeks out, allowing them to keep their thumb on the market.
Harvest at 632,000 head is helping pad the inventory at 36,000 head off last year’s pace. Many blame the uncertainty in the beef cutout providing little motivation for the packer to increase production. For perspective, the cutout at $302 is $60 some dollars ahead of the 5 year average and $40 some dollars ahead of last year.
Looking ahead, many will analyze Monday’s numbers and determine the needs of the packer. Cattle feeders will continue to look for price advances on the back of tighter supplies.
