Focus Shifts To Report Day

Cattle – Futures still pricing in cash +$3, cash bids are small but do suggest that $3 higher trade

↔ Yesterday’s PM BB was choice +0.48 Select -0.16 packer BE at 198.76, packer cushion $8.21

↔ Cash bids are small but continue to imply a $3 higher cash trade (193.50 KS/TX or 200 in NE) which is exactly what futures already have pre priced in

↔ The BB grind higher has slowed even more but is still on a very slow move higher

↔ Given that packer profits will drop to near $5 if packers pay $3 higher in cash this week it is tough to assume another higher cash trade next week unless BB starts moving up at a quicker pace