Cattle traded in the south early in the week at $1 higher prices, suggesting packers were hungry for inventory.
Did outside factors or did cash trade cresting at $110 create the sell off Friday? This week’s cash bids from the packer might be the best answer to that question.
Continued support from the board could yield higher cash prices for most producers. Packers need for higher grading cattle could also help push prices higher in the weeks to come.
Packers didn't show much interest in pursuing additional inventory last week, and the result was a cash market that traded $1 lower.
Beef packers could be moving into a period with smaller inventories, which may prompt them to push prices higher. CME futures prices will again have an impact on the cash trade.
The cattle feeders taking advantage of the positive basis, the trend for several weeks now, was again the catalyst for last week’s trade.
This week should show us how willing the packers are to pull May contracts.
Despite packer inventories, last week's cash cattle trade met most cattle feeders’ expectations.