Market Retreat Expected With Smaller Harvests
Cattle feeders experienced a week of light participation from packers as the impact of COVID-19 begins to hamper production facilities. Workers in packing plants around the nation have tested positive for the coronavirus with at least two deaths so far.
Absenteeism at packing plants is high as many workers are unwilling to show up due to the risk of exposure to the virus and potential health concerns. Several packers didn’t participate in the cash trade market last week due to inability to run at full capacity and the other two were on limited head count. The lack of need for cattle led to a $105 live market in all areas, and a dressed market of mostly $168.
Producers continued to work through the struggles of not being able to get cattle marketed for another week. The price does not seem to be as much of an issue as just being able to find a slot to get cattle harvested. As the reduced harvest continues, this problem will only increase as we continue to move toward larger fed cattle supplies.
Cattle feeders battling for a harvest spot will dominate the trade as we continue to operate under COVID-19 quarantine and health concerns. Lack of harvest slots are even pushing larger corporate entities to use marketing tools such as the Fed Cattle Exchange to try to move numbers.
The corporate feeders entering the market when cash numbers are already hard to move will create an even larger issue for independent feeders to move cattle. The independent feeder has to set the cash price weekly by trading in the live market – now they have to battle the corporates for the few live cattle trade slots available.
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