Hulett: Downtime Hampers Cash

Multiple packing plants had downtime last week due to mechanical and labor issues.  This downtime coupled with the upcoming holiday-shortened schedule left the packer with little need for cattle.  The shortened need for cattle abled the packers to get their needs met easily and were able to hold the market to $123 in the South.

Packers continue to run up against shortened available fat cattle in the North.  Many producers continue to hold out for higher prices knowing that most cattle in the area are current or even a little green to be on a show list yet.  This allowed for dressed cattle to be in the low $200’s and most cash cattle to trade up towards $130.

Most packers will be off next Monday, and many will also be dark this Saturday.  This shortened harvest schedule will continue to give the packer a break from having to chase the market higher.  Cattle producers are keeping an eye on the upcoming October cattle contract and hoping that that will give some leverage to continue to push the market higher. 

Brad Hulett is Director, Customer Development & Regional Manager, Kansas, at Consolidated Beef Producers , Inc.