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.
Feeder cattle found aggressive bidders the first full week of trading in 2017.
Cash cattle prices took out highs set back in March this week, a feat few expect from a June market.
After running uphill for three consecutive months, stocker and feeder markets fell lower amid light receipts.
Packers were aggressive in obtaining inventory to start the new year, and the result was a cash cattle market that gained $2 in both the north and south.
USDA’s monthly cattle on feed report, released Friday afternoon, provides some bearish news for summer futures contracts.
In early 2017 cattle producers were frustrated by price levels below where fundamental indications suggested they could be.
In anticipation of reduced harvest during the holidays, packers are sitting in a good inventory position going into the next few weeks.