Mackey: A Good Week for Competition
Cattle feeders worked to end the year on a positive note. Those who clung to their asking prices and made it to Friday saw a $2 higher market compared to the previous week. Another good week of competition, at least three bidders in the marketplace in multiple regions. When it was all said and done 102,000 cattle, cash and grid combined, would be the packer’s tally. That’s 15,000 more than the previous week.
The South saw early week trade at $172 cwt live. As the week would conclude, the Northern market would work off $172-173 bids. Before ultimately trading at $273 dressed and $174 cwt live. Northern packers unwilling to pay up, but to continue to move volume would reenter the Southern market at $173 cwt live, another $1 higher, in order to fill their needs.
Looking ahead, could this be a New Year for a new chain speed? Many will eagerly watch as the packers will continue to manipulate their chain speed to throttle the market. Cattle feeders will look to leverage multiple bidders into higher sales.
