Packers continued to keep the trading range wide last week while lowering their bids. Many feeders passed on bids they believe are not reflective of current cattle values.
Packers took on more inventory last week, which allows them to sit out and leverage the extra volume to push the market lower with potential extended delivery periods.
Poor performance from CME futures on Friday limited what cattle feeders could gain back on the cash market from the declines over the last few weeks.
Cash cattle prices rallied $3-plus per cwt. last week, and average feedyard margins remain above $200 per head.
The cattle industry continues to struggle getting cattle out of feedyards and into harvest facilities, leading to another week of limited trade.
The cash cattle market reached its tipping point and began backward movement, but indications are that it will be short-term.
Feedyard closeouts saw modest improvement last week, but cattle feeders remain frustrated by their inability to push the cash market higher.
Cow-calf producers have a lot to consider when it comes to marketing their calves this year.