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Northern dressed cattle traded $3 to $5 lower and Southern live cattle $2 lower than the prior week's weighted average in the last cash cattle market. Boxed beef demand remained strong and front-end supplies of market-ready cattle remained thin.
Packers hold leverage through deferred delivery, which can cap cash prices even with tight supplies and firm beef values. Feedlots face difficulty pushing cash prices higher in the near term.
dtnpf.comShayLe StewartMay 1, 2023Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Prior week's cash cattle trade came in $2 lower in the South and $3-5 lower in the North, which weakened the cash basis that futures converge to and pressured nearby futures.
Packers won the prior week's cash market with northern dressed down $3-5 and southern live down $2, signaling weaker cash prices that dragged futures lower.
Cash cattle fell $2-$5 from the prior week as packers gained leverage, giving futures a lower cash anchor.
Last week's cash cattle traded $2 to $5 lower, which signaled packer leverage and weaker fed cattle values that pressured futures.
