Cattle feeders managed to keep the market heading higher in last week’s cash cattle trade. The south traded mostly at $107 with a few cattle trading at $106 earlier in the week. The north also moved prices in a positive direction with dressed cattle trading at $170 and cash cattle bringing up to $109 live.
Can we continue the rally? The answer to this magical question is what everyone wants to know. Looking forward, the upward trend in cash cattle could continue through the holiday rib demand, with Choice product being in short supply.
Packer margins continue to be robust, leaving them in a position to continue with large kills to take advantage of excess cattle. New updates on the reopening of the Finney County plant have been slow to non-existent. However, every week that goes by is a week closer to opening, and potentially more competition due to a need for additional cattle. Until the reopening of the plant, feeders will have to hold strong and keep this market headed upward.