Hulett: Upward Movement Continues
Kansas cattle feeders started the cattle trade in the South last week at $141. This was bid by a regional packer from the North trying to extend inventory in its area. The majors came in behind them and bid $140 all through the South. Cattle feeders began moving cattle at this price due to urging from customers to keep moving cattle off the feed bill.
The North continued to keep their market moving higher, too. Dressed cattle were around $230 with cash cattle bringing $145-$148. Cattle feeders continue to find themselves with adequate supplies to supply the packer.
The board took a step backwards on Friday, but the market still appears that it has more upward potential. Cattle will continue to come in lighter than expected and lose grade due to high ration costs. This could help keep forcing the packer to harvest more cattle than expected to keep their orders filled.
