Mackey: Late-week Win
Cattle feeders earned a late week win. As the futures continued to grab new ground throughout the week, cattle feeders continued to find confidence in higher asking prices. The South would trade at $182-183 per cwt live, that’s $2-3 higher compared to the prior week. The momentum continued North where trade ranged from $184-185 per cwt. even some outside deals were done at $186 cwt live. Dressed trade took place from $288-292 per cwt. primarily.
The tighter numbers are encouraging more competition and prices are reflecting that reality. However, it's hard not to notice the lack of momentum on the dressed trade. Packers continue to find insurance in their grids. The turn-ins continue to curb their needs to actively push on the remaining cattle.
Looking ahead, asking prices will seek to build on the momentum from the previous week. Packers will remind cattle feeders of their declining margins and start the limited need conversation highlighted with upcoming kill cuts.
