Mackey: Packers Laying Prep Work for Short Supplies
The industry moved cattle at mostly steady money last week. The weaker futures market continued to encourage trade at $165 and by late Friday all regions had trade reported at steady money. $265 would sum up the dressed trade.
Volume was light on the week, but more numbers will be reported on Monday. National Negotiated Volume comes in at 63,279 head compared to the 70,838 head this time a week ago. This is in part related to the packer’s willingness to rely on their captive supply and carry inventory. I mentioned in a summary a week ago, their inventory won’t last long— I stick by that. I will also note their willingness to keep an inventory is a show of their hand. Late Friday there were reports of a Regional in the East paying higher money for the week of April 3. This is laying prep work for short supply they will face in the coming weeks.
Weekly harvest comes in at 634,000 head. That’s 5,000 bigger than the previous week, but 3,000 smaller than a year ago. Year-to-date slaughter is running 2.5% behind last year’s pace. March is the season for cooler cleanings, which is to be expected.
Boxes have not helped the attitude of the packer. The cutout has been under pressure and looks to remain under pressure for the balance of this month. The daily volume has been good. An interesting note Wednesday’s box volume was the largest since the 1st week of December.
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.
