Higher Cash Cattle Prices Continue
Feeders helped add to the rising price of fed cattle. Most feeders in the South pushed the cash market two dollars higher at $105 for the bulk of the trade. Packers were fairly aggressive in their drive to increase their inventory. Cash traded mostly on Thursday, but packers took on additional cattle Friday at steady money.
The North traded higher in both cash and dressed cattle. Packers pushed to get the trade started in this region anticipating feeders would be more nervous than their southern trading partners. Producers stood firm. The North traded at $105 cash and $165 dressed on the bulk of the cash cattle, with some cattle trading outside of these numbers.
Friday’s Cattle On Feed indicates the cash market may be headed south and alternatively other indicators point to an upwardly direction. As we continue through the fall, weights will continue to drop as feeders try to reduce the number of days on feed on most cattle. The reduction of days often has a negative impact to the amount of Choice product available. The reduced Choice could come at a time when packers are beginning to hear some chatter about holiday orders.
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