Mackey: South Leads the Way Higher, North Trades at Par
A pre-report flurry in the futures markets encouraged the cash market to trade $3 to 4 higher than the previous week. Southern feeders saw the biggest price increase from trading at just $179 cwt live a week ago to $183 cwt live last week. At least two bidders were willing to take on inventory at the higher money.
The Northern market was slower to develop, many looked to separate themselves from the Southern trade asking higher money. When it was all in and done, cattle feeders would release showlists at par $183 live and $292 cwt dressed. Albeit, still higher than the previous week.
As whole, only 64,000 head hit the report Friday which is 46,000 behind the week before. Many will await Monday’s totals to see if the packer added position.
Most of the early week conversations will be infiltrated with Cattle on Feed discussion. All categories fell within the pre-report ranges. The biggest surprise was in the placement column, reporting at 5% larger than estimated. As a whole, still one of the smallest placement numbers we have seen for quite some time.
Looking ahead, packers will be sure to remind cattle traders of their kill cuts and eroding margins. Cattle feeders should highlight the recent gains in the boxes and better weather on the forefront to support demand and improved feeding conditions.
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.
