Feels Like Change Is Coming to the Cattle Markets
Steady money dominated the market for the sixth consecutive week. However, winds of change are blowing and steady $111 could be coming to an end.
Trade was very limited in the south, with many feeders not willing to take steady with 10 to 14 days for delivery. Western Nebraska showed signs that the changes could be positive with a few cattle trading at $111.50.
For cattle feeders to move many cattle this week, we need to see a change in the basis. Cash is either going to have to rise or the December board needs to retreat. Feeders are hopeful that cash will rise. Due to early weather, weight averages are down, and beef demand continues to stay strong.
Packers were not as successful in tying up cattle at $111 with time over the past few weeks. Therefore, the packer may used some of their inventory to fill kills this past week. The cash market could possibly be stronger this week with the push on the packer to take on inventory.
The calendar inching closer to November every day, putting pressure on the packer to stay current on their inventory or run short in fulfilling holiday rib orders just around the corner.
