The fluctuation in the cash price in this trade seemed to be mostly dependent on the location of the cattle, with prices ranging from $114-$116, with dressed trade at $182-$185.
COVID-19 has temporarily placed a restriction on the number of cattle that can be harvested in a given week. That scenario is usually a recipe for lower prices, but this week’s extremely light fed trade was steady.
Packer’s had a stronger presence in last week's market, but not enough to make up for the erosion of the futures markets.
In anticipation of reduced harvest during the holidays, packers are sitting in a good inventory position going into the next few weeks.
Cash fed cattle rallied $3 to $5 per cwt. for the week ending July 12, jumping from $109 in the pre-holiday week to $114 to $116 on Friday.
The current cattle market situation creates significant disparities between the current supply and demand situation and expectations for coming supply and demand conditions.
Over the past 10 weeks, cattle feeders have gained market leverage in a rally the likes of which have not been seen in many years.
Cash fed cattle traded higher for the fourth consecutive week, and Friday's cattle on feed report was called neutral for markets ahead of the Thanksgiving break.