Hulett: Cash Loses Momentum
The cash market had more pressure on it last week and was led lower by the board. Feedlots saw more participation from the packer, but none of them needed enough inventory to keep the market steady. Cattle feeders in the South were forced into trading cattle at $140 with some cattle bringing $138 towards the end of the week.
Feeders in the North also saw a pullback in their market. Cash cattle traded mostly at $140 with some in isolated areas bringing more than that. Dressed cattle traded in the mid $220’s for the most part.
Packers have seen some of their margins begin to slip away as boxed beef prices eroded, and the number of market-ready cattle declined. To combat this several packers have begun to pull Saturday harvest. These harvest reductions along with the sell off on the board are more issues cattle feeders don’t need after dealing with almost three years of harvest issues.
Brad Hulett is Director, Customer Development & Regional Manager, Kansas, at Consolidated Beef Producers, Inc.
