Mackey: Packers Grudgingly Pay Up

.
.
(CBP)

Packers reluctantly paid higher money last week.  Spurred by a stronger board, cattle feeders stuck with their asking prices and saw the market reverse the previous weeks’ trend.  The South had the most notable improvement on the week with the widespread $180 per cwt. bid by multiple packers jumpstarting the market and moving volume. 

Meanwhile, the Northern market was slower to get going.  Packers attempted to work cattle feeders over with bids of $178 live and $288 dressed, before offering steady bids of $181 and $290.  Even then, the market was slow to become established.  By week’s end at least one major was reported at $292 dressed and live bids from $183-184 per cwt. and outside regional sales at $185 per cwt.  That would be $1-2 higher on the week.  When it was all said and done, Friday’s negotiated volume was 82,000 head, about 21,000 head behind the previous week.  Look for Monday’s number to grow fractionally. 

Side note, looking at the price breakdown for the last several weeks.  The packer has been successful keeping his grid price relatively unchanged.  Feedyards should be cognizant, as the spread is supportive to hang the cattle up, packers aren’t pushing any harder for the grid type cattle.  Assessing, at least 2 of the major packers’ behavior, it would be safe to assume their limited involvement has been promoted by grid turn-in cattle.

Looking ahead, cattle feeders will look to push this market solidly higher. Cattle feeders will find confidence in the futures strength signaling better markets later into the year. Packers will continue to push grids to control their needs.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.