Hulett: Cash Struggles To Rally
Cattle feeders in the South continue to find themselves tied to an burdensome supply of cattle. Packers were more than willing to step down and take more of a “second cut” type animal this week. This type of animal is mainly what has been backed up in the system for the most part and feeders are ready to take any bid they can get. This led to a mostly steady market at $124 with a few cattle bringing $125 late in the week.
The North was able to do a better job on their marketings. The North’s cash trade was mostly $125-$126 and $198-$200 dressed. This was $1 to $2 dollars higher on both cash and dressed cattle.
Cattle feeders will have a limited window to get undesirable cattle marketed before larger corporate feeders will find them themselves in larger supplies, once again backing up the supply chain. The beef industry as a whole will also need to keep an eye on the transportation sector. Many in our industry have found it very difficult to find trucks, and this problem seems to be growing every week.
Brad Hulett is Director, Customer Development & Regional Manager, Kansas, at Consolidated Beef Producers , Inc.
