Mackey: Feeders Push the Tide Higher Throughout Week
Cattle feeders continued to change the tide as the week (Dec. 18) progressed. Early week business at steady failed to fully establish a trade. As the week continued cattle feeders gained strength in their asking prices.
By late week packers eager to get to the weekend paid up to move the inventory. Bids at $171 cwt would trade the South, with at least 3 packers participating. The North would pass the $270 cwt dressed and $171 cwt live bids and move the market $1 higher, and $271 and $172 would trade the cattle.
Again, another week of multiple packers participating. Volumes on Friday have the National negotiated number at 50,000 head— Roughly 6,000 more than the week previous.
Looking ahead— the week will be filled with Cattle on Feed commentary. Likely, most will look for it to pressure the markets. Winter weather will impact a large area with many feedyards in the footprint of the storm. Look for that to offset some of the negativity. Most will look to advance prices, as packers work a short trade week for a long harvest.
