Mackey: Aggressive Packers Give Up Some Inventory
Cash cattle trade finished last week steady. The South was the first to see activity at $178. As the North continued to remain priced at their $185, one major was reported to reenter the Southern market, buying the second cut of cattle to freight out of the region.
By late week trade would develop in the North on a select few, mostly at $182 cwt live and $290 cwt dressed with reports of more money paid on beta frees. Most view this as a victory after several weeks of sliding through the tail end of June.
We continue to believe the packer has given up some inventory with aggressive kills and the historic box beef prices that encourage him to continue to run. The National volume week-to-date cash and grid combined, is 90,579 head. That’s short 39,000 head when compared to last week. Combine that with this week’s harvest at 644,000 head— 5k off last week’s pace, but 3k ahead of last year— Packer will need to get creative as we work through more manageable July numbers.
More reports of quick ships occurring in all regions. One chalks this up to the erratic harvest schedules, but one must also consider the tighter than normal available supply. Coupled with Independence Day, show lists will remain small and manageable, most look for cash cattle to move higher.
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.
