Packers added $2 per cwt. to bids to get the market moving last week. The South was first to trade at mostly $190 cwt live. Additionally, a wide range of delivered prices would find their way into the mix at $193-198 cwt. Many feeders reported the cattle will have a final destination in Nebraska. Continued weeks of cattle drifting North has tightened the spread between the two areas. The North would see trade primarily at $198 cwt live and $312 cwt dressed.
Friday’s total trades were not large enough to leave the packers comfortable. A few holdouts would find themselves answering packer calls on Saturday to trade a few more at $198 cwt.
Packers are fighting losses tooth and nail. They have implemented an array of production cuts to minimize the slide in boxes. Their production schedules will be touch and go as they balance their margins and the available supply of cattle.
Looking ahead, showlists will once again be very manageable for the time slot. Having reached a $2 victory last week cattle feeders are again that much closer to the $200 cwt threshold. Look for asking prices to be common at or above that level. Packers will be reluctant to push any harder than they must and will be as creative as they can to minimize their needs and influence on the market.
