The early trade released any pressure on packers to acquire available inventory and made it easier for them to achieve their buy. The majority of the cash trade in the South was from two packers.
Cash cattle prices traded $2 higher, yet cattle feeders anticipated an even higher market.
Cattle feeders knew selling ahead of a short holiday week would create additional challenges for cash cattle prices and the ability to move cattle. Unfortunately, trade volumes met low expectations.
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.
The past several weeks of trading in the fed cattle markets have shown that basis is becoming more important to many than the actual cash price.
Cash fed cattle prices finally turned higher in the south, following in the steps of the north to add $2 per cwt to the cash market.
What should have been good news for the grain and oilseed markets ended up having the opposite effect as we ended the week down, sharply down some cases says Jerry Gulke, president of the Gulke Group.
Cash fed cattle traded at steady money last week, a disappointment to many feeders who anticipated higher bids.