Mackey: Cattle Feeders Win The Week, Prices Advance
Cattle feeders won the week and drug the cash market higher Friday.
Cattle feeders were unfazed with the lower futures market prices and reported only 14,895 head trading on Thursday. Friday’s rally would erase the week’s losses and confirm asking prices.
Kansas and Texas would be the first to fire at 165 per cwt. Cowboys looked to move cattle to the buyer with the least amount of days. Nebraska and Iowa posted the biggest range from 163-167 and 265 per cwt., call their market $3 higher.
The industry would trade 55,000 cattle Friday to bring the week to date total to 71,000 head at mostly 165, but there has been lots of buzz about the 167 reported. Cattle feeders are in the driver’s seat.
Harvest came in at 629,000 head. Though slaughter was bigger than the week previous, it is still smaller than a year ago levels of 659,000 head. Packers have slowed the slaughter pace earlier than expected trying to manage the cattle feeders’ leverage.
Looking ahead, packers will look to live on their contract cattle and commitments to slow the ascent of this market. When the numbers are tallied, they have less than last year and it won’t last long. Cattle feeders should be prepared to capitalize and negotiate prices that will test all-time highs.
A native of Torrington, WY, Brodie Mackey joined Consolidated Beef Producers in the spring of 2013 after earning his B.S. from the University of Nebraska-Lincoln. Brodie’s focus at CBP includes customer development, cattle marketing and evaluation in Nebraska, Northeast Colorado, South Dakota and Wyoming. For more about Consolidated Beef Producers visit here.
