In this week’s Cattle Call, Joe Kooima with Kooima Kooima Varilek Trading unpacked last week’s strong cash cattle market and gives insight into early trades developing midweek.

CASH CATTLE JUMP

Looking back, Kooima pointed to the recent separation between the cattle and stock markets as a catalyst for the $5 to $7 jump in cash prices last week.

“Last week was the first time in several weeks… that we had a good divorce from the stock market,” he said. “The fundamentals just started to ring true.”

Kooima explained that both northern and southern regions are experiencing tighter cattle supplies, which, combined with seasonal beef demand, created pressure for packers to come to the table.

“It was a good week last week to see the packers come to the table… just some tighter numbers all around,” he said. “This is your spring move for beef demand.”

SUMMER GRILLING SEASON

Looking ahead, Kooima said packers are aware of the need to secure enough cattle as back-to-back holidays and summer grilling season approach.

“This is a time that they kind of make sure that they have all their quotas met.”

When asked about the current pace of marketings, Kooima said show lists are relatively short.

“Even if we don't move the whole show list… it's just nothing compared to what three, four, five years ago were worth at all.”

He added that packers have tried using kill cuts to manage prices, but that strategy hasn’t been able to contain demand. Kooima also tackled a listener question about importing grind. He noted that U.S. beef imports aren't new and are helping stabilize consumer prices.

“It is a good thing to keep having some product come in… so they can move. We don’t want the consumer to be shocked too heavily if we have a big jump.”

His advice? Stay current on marketings rather than chasing next week’s possible price.

“Let’s not get carried away… the market doesn’t have an opportunity to market things higher the next week at all.”

Midweek, the cattle market is seeing early cash trades, with the South reporting some $213 sales—about $3 higher than last week.

“It’s a good start… we do have a good firm undertone in this marketplace.”

The leverage has shifted back to the feedlots, Kooima said, but noted the importance of monitoring the stock market to guide expectations through the end of the week.

CATTLE ON FEED

On the recent Cattle on Feed report, Kooima noted it was fairly neutral but hinted at possible heifer retention. Still, he emphasized that strong cull cow prices and weather conditions might slow any major herd rebuilding.

“It’s going to be a pretty interesting dynamic… it’s just going to be a very slow progression with it anyway.”

Contact the KKV Trading Team at kkvtrading.com or by calling (712) 722-0023.

Cattle Call is an original production of the Nebraska Rural Radio Association and is brought to you by Wolf Auto – Small Town Strong.