The Fake Cash Market May Be Over
The South continued to trade more cattle than the previous week. Three packers participated in the cash market with most cash trade in the range of $115 to $120.
The North’s cash trade continued to have a wider range. The cash market was $111 to $118 live and dressed cattle ranged from $175 to $189.
Cargill was the only packer to continue to purchase cattle at $120. National Beef announced that all grid cattle harvested this week would have all discounts applied and would be priced off the average instead of a set price. Tyson is accepting both grid cattle and cash cattle.
Tyson turned down some cattle last week that they thought are now too big, which is a huge concern that other feeders may encounter in the near future.
Moving forward as boxed beef prices continue to decline, packers will have less need to support the market. If packers quit setting a floor for the cash market producers could begin to see a fall in market prices as shackle space is still at a premium.
