Short Week Could Drive Cash Market Lower
Last week was again a disappointment to cattle feeders, with most producers having to give up another $1-$1.50. $109 seemed to catch most trades in the South, with the North bringing up to $109.50 and $173.00 dressed. Packers were able to pressure producers in the North, creating a weaker market that set the pace for the trade in the South.
Cash trade this week is anticipated to look much like it has over the past few weeks. Packers will buy for a shortened, holiday week. Feeders will have to make the decision to take the market to keep show lists current, or try to wait for a better market. If most feeders can make it through this week and stay current with their numbers, beef demand could push packers to have a bigger appetite Labor Day week.
The board was down hard on Friday, with what appeared to be anticipation of the cattle on feed report. Placements were up which wasn’t a surprise due to the dry weather around many of the grass regions. Most other numbers on the report seem to be manageable. Only time will tell what direction the board and market goes, but, we may be getting closer to the bottom of the run.
