'Turn In' Cattle Driving Market Down
The South traded mostly steady, with prices ranging from $118-$119 last week. The number of negotiated cattle is what seems to be the biggest disappointment. In the South seven plants harvest an average 5,000 head per day - each, that’s 35,0000 head harvested per day. Last week, only two days of harvest, or 10,000 head, were considered cash trade.
The lack of cash trade should give a clear indication that the corporate or “turn in” cattle are influencing the quick decline in the market with their packing partner.
The North continues to see their market dry up. The early week cash trade was around $123, but market tanked fast all the way back to $118 by the end of the week. The dressed trade followed the same dismal trend. Feeders started dressed trade around $197 and ended the week in the lower $190’s when the dust cleared.
The good news going into this week is that all plants should have completed their planned maintenance. The harvest should be at full capacity. The bad news is that corporate feeders will be looking at a positive basis. The positive basis will likely encourage a flood of market ready cattle turned into the packer. The independent feeder, who sets the market price through cash trade will again take less money due to lack of shackle space.
