Positive Basis Leads Market Lower
The cash market took a step backwards last week as live cattle traded at $127 in most areas with dressed cattle bringing $204. The trade happened earlier in the week than what we have been accustomed too. This was brought on by some producers taking advantage of a slight positive basis at the time of trade. Producers were still willing to move cattle at this level, knowing that many of the cattle being shown are storm hurt and need to be moved.
This week should bring some interesting developments in the market. We saw strong support on the board toward the end of last week. If this momentum follows through this week producers will definitely need more. The unfortunate conditions throughout the state of Nebraska and now spreading into Iowa will bring some uncertainty. This could push the market due to the fact that some producers and packers may have a hard time getting cattle moved through the state.
