Mackey: Cattle Feeders Earn Moral Victory
In a week of headlines and futures corrections— cattle feeders earned a moral victory.
Packers were quick to act on the falling futures. Limited lower bids in the South were initiated with 3 weeks' time, when cattle feeders passed, packers would back up to $185 spreading nervousness and confusion. To the packers’ surprise only a handful of cattle would move. Packer buyers would renew $186 bids and get cattle to move with a 7-10 day pick up.
Northern cattle feeders weren’t interested in the game of cat and mouse. Showing more resiliency to the lower offers, cattle feeders worked buyers off $188/296 bids to get them closer to their “Steady” money asks. The bulk of the trade would take place at $189 cwt live and $299 cwt dressed. Cash would continue to flex its muscles into Friday, with higher trade reported—$191 cwt live and $300 to 305 dressed.
When the numbers were tallied Friday, the National volume sat at 99,887 head cash and grids combined. That is roughly 35,000 head shorter than the previous week. Perhaps packers were slightly more comfortable with the Easter harvest schedule or that much closer to their April captives. Most will view their lower bids that unsuccessful in securing any inventory.
Looking ahead— Mainstream news outlets will continue to discuss effects of the HPAI sending mixed signals into the marketplace. Cattle feeders should watch packer activity—more bidders should be their encouragement to hold firm on their asking prices.
