Sandhusker
Well-known member
Fed Cattle Commentary
01/06 12:55
Hackney Cattle Company / 402.680.4739
Hackney's comments from Friday, January 6, 2006.
*************************************************************************** The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees. ***************************************************************************
FED CATTLE
Packers continue to act like a fat rich kid in a candy store, with a pocket full of money. They have all the cattle they need, like Thursday's 127,000 head kill, and with the high percentage of give-a-ways or formulas, as they are called on their books, they have very little incentive to step up to the cash plate and take a swing at the true value of cattle.
Some sales in the north were reported at $93-$94 and $149 on Thursday and $94-$94.50 in the south, but from the numbers reported Thursday, we will have the majority of this week's sales locked down by Friday evening.
It has become more evident each passing day, that the grade and yield programs are increasingly holding sway over cash sales, especially in the north, and this of course allows for packer independence to run amuck.
To make the grade and yield and formula programs really click for packer economics, the sales crew only needs to sell enough cheap beef to get it quoted, like Thursday's $2.07 lower quote on choice, and this sets the stage for next weeks averages and pricing formula programs.
FYI: Walt Hackney's practical insight into the livestock markets, also dictates that he spend much time in the production areas, buying/selling cattle, and periodically he cannot do his daily commentaries in a timely manner.
01/06 12:55
Hackney Cattle Company / 402.680.4739
Hackney's comments from Friday, January 6, 2006.
*************************************************************************** The views expressed here are those of Walt Hackney and are not necessarily those of DTN, its management or employees. ***************************************************************************
FED CATTLE
Packers continue to act like a fat rich kid in a candy store, with a pocket full of money. They have all the cattle they need, like Thursday's 127,000 head kill, and with the high percentage of give-a-ways or formulas, as they are called on their books, they have very little incentive to step up to the cash plate and take a swing at the true value of cattle.
Some sales in the north were reported at $93-$94 and $149 on Thursday and $94-$94.50 in the south, but from the numbers reported Thursday, we will have the majority of this week's sales locked down by Friday evening.
It has become more evident each passing day, that the grade and yield programs are increasingly holding sway over cash sales, especially in the north, and this of course allows for packer independence to run amuck.
To make the grade and yield and formula programs really click for packer economics, the sales crew only needs to sell enough cheap beef to get it quoted, like Thursday's $2.07 lower quote on choice, and this sets the stage for next weeks averages and pricing formula programs.
FYI: Walt Hackney's practical insight into the livestock markets, also dictates that he spend much time in the production areas, buying/selling cattle, and periodically he cannot do his daily commentaries in a timely manner.