I head into this week refreshed and humbled from the long Memorial Day weekend, and hopefully the cattle market will feel much the same. Last week was a busy week for the cattle market once again. Cash cattle trade trickled in nearly every day, everyone's eyes were keen on keeping track of daily slaughter numbers and Friday revealed the latest Cattle on Feed Report.
Last week's board was indecisive and kept feeling pressured by the resistance built at the $100 threshold in nearby live cattle contracts; although we've mentioned it for weeks, the problem of a lofty, built-up fed cattle supply hinders the board's ability to rally with the cash market and will continue to do so until those cattle are thoroughly worked through.
Cash cattle prices were able to pull off another week of higher money and surprisingly sold quite a few head. Following the previous week's negotiated sales of 103,413 head, as of Friday afternoon, there were roughly 62,850 head of negotiated cash cattle bought. Seeing that packers bought so many cattle the week before, many assumed that they'd be less aggressive.
As May looks to turn the page to June, our attention to early feeder cattle sales needs to be keen as so much uncertainty continues to affect the cattle industry.
ShayLe Stewart can be reached at firstname.lastname@example.org
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