Mackey: Higher Cash Drives Another Solid Cleanup Week
Last week's fed cattle trade wrapped up posting higher prices in all areas. The Southern feeders refused early week $147 bids and leveraged their smaller show lists with $152 asking prices. By Thursday the majors would entice trade with $150 and $238 bids. Early reports indicate another week of solid cleanup.
The North was slower to come off its early week asks of $155 Live and the equivalent dressed. Only a few cattle from the first cut would move at the $155 primarily from regional packer interest. By the end of the week $153 live and $240 remained the viable choice for feeders. Ultimately feeders would recognize the bids were selective in nature and reward the up in the market.
Friday’s National Negotiated Volume shows 120,264 head, 22,000 short of last week. This could be a combined result of feeders playing tougher on their year-end inventory, bigger buy from the week previous and a slightly slower harvest pace. The harvest comes in at 668,000, 5k below last week, still even with a year ago.
Cash Cattle weren’t the only numbers posting gains. Carcass weights out Thursday from October 16th had steers at 924# the 2nd Highest in History. It’s no wonder given the current feeding conditions, but after figuring feed costs, which are considered some the highest inputs in history—what is encouraging feeders to hold onto the cattle?
The next couple of weeks it will be important to watch the signals in the marketplace. We will be facing another potential interest rate hike and a midterm election.
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.
