The South saw another wide trading range last week as prices ranged from $95 to $115 per cwt. for cash fed cattle with just two packers active in the negotiated cash market.
Light cash trade continued with a wide price range. Two of the major packers were active in the market, with one actively making an effort to support prices.
Packer margin is significant. However, why is packer profitability the only focus, and we are not as outraged about the other “elephant in the room” issue within our market?
Cattle producers continued to be in the crosshairs of the chaos in the global markets. In the south producers found $110 was the best trade they could get, with cattle trading as low as $105 by the end of last week.
Packers were aggressive in obtaining inventory to start the new year, and the result was a cash cattle market that gained $2 in both the north and south.
Packers were eager to push their inventory higher last week and prices in all regions responded by moving $1 to $2 higher.
In anticipation of reduced harvest during the holidays, packers are sitting in a good inventory position going into the next few weeks.
Last week was one of the last chances for cattle feeders to push the market up to the $120-plus price range. Three packers were in the market to buy cattle by feeders chose to settle for steady money.
The cash cattle market continues to be the best broken-record producers ever heard of late as three of the four major packer participated in the live trade last week.