Fed cattle firmer

Markets were closed for Memorial Day this Monday. The processors will enter this week with a very light inventory of livestock for slaughter but this week’s slaughter volume is expected to record breaking small. Packers will sieze on the anticipated volume to regain some bargaining power with the retailers. Cattle owners will attempt to maintain their leverage on cash prices.

Last week represented the smallest trade volume in many months. Live trades in the north have mainly been US$/cwt 230-231 (US$/cwt 1 higher). Dressed prices have moved higher and traded US$/cwt 360-367, this was US$/cwt 5-7 higher. Very light volumes of sales in the south have been at US$/cwt 220 live with most cattle priced dollars higher. Processors slaughtered 570,000 cattle this past week up 4,000 from the previous week, but down 32,000 from last year. This past week packers sold boxes with price gains slightly improving their deep in the red margins, according to The AG Center report.