Hulett: Cash Changes Direction

Packers found themselves in an unusual position last week.  It was one of the first times in months that multiple packers needed to buy large supplies of cattle.  In the South packers were able to get a few cattle bought early in the week at $135, but did not secure much volume.  Later in the week bids were raised to $136, and this was a level that got cattle trading. 

The North was able to push their market higher, too.  Numbers of high-grading cattle still seem to be in short supply, causing all packers to push to get the front end.  Cash cattle in the North ranged from $140 to $145 and dressed cattle bringing $222 to $227. 

Many independent cattle feeders were able to get larger show lists of cattle cleaned up last week.  This cleanup combined with a drop off in committed numbers will more than likely lead to a rise in the cash market as we go forward.  The rise may not be straight up, but feels that we may have summer lows behind us.

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