Mackey: Standoff Produces Payoff

The big carry paid off. Packers paid up for the inventory they missed the prior week.  All areas reported higher trade with gains of mostly $2 per cwt. The East was the first to see action.  Cattle feeders refused steady offers and remained unpriced.  Multiple bidders in the marketplace worked bids to $295 per cwt dressed and $188 per cwt live. Ultimately, cattlemen would be rewarded as the market moved and cattle were sold.

Unlike previous weeks, the South followed the momentum of the North. They stuck to higher asks and packers paid $180 per cwt live would trade the cattle. 

After trading 33,000 more cash and grids combined than the previous week, the packer will look to further suppress the chain speed and keep the market in check this week. This in turn should support the boxes. Many analysts will watch the cutout for direction.  Cattle feeders will look to capture more value, as the replacement costs continue to soar at an unprecedented rate.