Mackey: Weather Produces a Disappointing Harvest
Severe winter weather across cattle feeding country reduced weekly harvest and damaged feeding performance. Cattle feeders will seek higher prices this week.
When it was all said and done the packer’s final tally last week was 61,283 head cash and grids combined. That’s 23,932 head fewer than the previous week’s total. Winter weather has impacted much of cattle feeding country, some areas more severe than others.
As feeders concentrated their efforts on cattle care rather than cattle marketings, packers fought battles with transportation and wastewater. Harvest was estimated to be at a disappointing 549,000 head. With the inability to get cattle through the plants, Packers looked to work the market lower.
Steady money $175 per cwt. live and $275 per cwt. dressed was paid by a regional before its needs were met. Eventually, the majors would develop trade at $172 in the South and $173 in the North. Mostly $1 lower than the previous week.
Looking ahead, blistering cold temperatures and drifting snow accumulation are taking its toll. Weather has impacted transportation to and from harvest plants and is undoubtedly peeling the weight off the cattle. The cutout printed higher off the production loss and will most likely continue that same path. Packers will try to make up kill where they can on a depleted inventory. Cattle feeders suffering performance loss should look to recover with higher asking prices. The cattle are in the storm and won’t ship any sooner regardless of price.
