A weaker beef cutout last Tuesday softened futures. Southern cattle feeders tempted with basis would roll cattle $2 lower at 188 per cwt. The Northern cowboys wouldn’t go so easy. On Wednesday, after lower bids were refused, steady money would blanket showlists. Trade in the North at $198 cwt live took the majority of the cattle. Dressed trade stumbled slightly, mostly moving at $312 per cwt. Clean-up trade would take place to finish the week at similar levels. The final count by Friday was 118,000 head cash and grid combined.
Looking ahead, many feeders will be eager for price direction. After several weeks of light trade, packers felt the need to push for inventory. Unusual behavior for a packer when the market is working lower. Cattle feeders will have some reprieve in the form of the weekend heat spell and look to hold onto their momentum. We should expect another week of sales with wide price ranges.
