Packers capitalized on last week’s e global IT disruption. The CyberStrike debacle that grounded planes and shuttered various operating systems likely contributed to the stumbling futures market that incited early week cattle trades.
(Reuters reported the American cybersecurity company CrowdStrike botched a software update on Friday that caused havoc around the world. The outage disrupted operations across multiple industries - shutting down public services, halting flights and forcing some broadcasters off the air.)
The South was fortunate to keep steady money circulating as $188-188.50 cwt live would move cattle. Northern packers continued to clean up show lists with the intent to freight them North. Northern cattle feeders were faced with a different predicament. Packers, rather than pay up to acquire inventory, looked to manage their harvest pace. Limiting their needs and fulfilling what’s left with Southern cattle, packers lowered bids from previous weeks. Bids of $196 cwt live and $310 cwt dressed primarily would cover show lists. As the board continued to break, cattle feeders would capitalize on basis and continue to move cattle.
By Friday attitudes would improve. A neutral to friendly Cattle on Feed report would provide confidence to those still holding show lists. Most would look to carry them into this week. Last week’s negotiated total was 18,146 head cash and grid combined, fewer than the previous week.
Looking ahead, packers will look for the cutout to find some support after the scheduled kill cuts. Cattle feeders will look to capture their losses from last week. Show lists will be manageable and packers’ needs likely increased with the smaller buy.
