Mackey: COF Relieves Some Anxiety, But Packers Throttle Back Harvest
Cattle feeders can breathe a little easier now that Friday is over. Many anxiously awaited the release of USDA's monthly Cattle on Feed report after last month’s debacle. A wide range of analysts’ estimates likely influenced some uncertainty in the week’s market, cash and futures alike. Placements landing 3% under the estimates should give the report a friendly lean. Bears will likely argue the increase in cattle on feed should neutralize the comprehension of the report. Prospectively speaking, the numbers fell within the estimates and most know packers have deliberately kept the chain speeds slow to keep cattle stacking up.
On the harvest front, the week to date slaughter came in at 636,000 head. Still off from last year, but a welcomed change of pace from the last couple of weeks.
Most would agree the cash market has been overwhelmed. Consecutive weeks of falling futures have coerced sellers into trading lower. This week $178 live and $282 dressed would gather the majority of the business. The North saw limited packer participation, with really only two players in the market after some early week business by a regional was concluded. The South continues to stay cleaned up and saw a few more bidders. Volume is still reluctant for the week at 92,575 head cash and grids combined.
Looking ahead, the industry will have an interrupted week with the Thanksgiving Holiday. The week’s positive influences should have Sellers looking to leverage the short work week with higher asking prices and hopes that buyers will want to move onto a long weekend. Packers will look to maintain their advantage.
A native of Torrington, WY, Brodie Mackey joined Consolidated Beef Producers in the spring of 2013 after earning his B.S. from the University of Nebraska-Lincoln. Brodie’s focus at CBP includes customer development, cattle marketing and evaluation in Nebraska, Northeast Colorado, South Dakota and Wyoming. For more about Consolidated Beef Producers visit here.
