Hulett: Cattle Market Runs Sideways to Lower
Cattle feeders were surprised when packers came out with steady money on Tuesday, and they were more than willing to sell cattle at $140. The steady bid moved all the front-end cattle, and producers were willing to move some second cut cattle at lower money as the week progressed.
Packers were not as generous with the market in the North. Despite still being higher than the South, feeders lost a dollar off their live market. Feeders saw cash cattle trade at $144 with dressed cattle trading $229-$230. Some cattle feeders were hesitant to trade at lower money, but many are beginning to feel the pressure of higher feed costs.
This week could be a very unpredictable week in the cattle trade. The board seems to have some momentum, but may not have enough power to keep the market steady. The North-to-South spread may continue to narrow as calves are still not ready and packers seem to be chasing more mature cattle in the South.
