Cattle feeders continued to place more cattle in February than most analysts expected, according to the monthly Cattle on Feed report. Total cattle on feed was about 9% more than last year.
Looming increased cattle supplies with more steers in the mix, limited pen space and the specter of trade-limiting tariffs added bearishness to the weekly cattle market.
Prices took a very big drop and were mostly $4-6 lower, but instances of $10-12 lower following a fed cattle price drop and dropping CME prices, which lowered hedging ability.
Ed Czerwien, market analyst based in Amarillo, Texas, offers a concise summary of how last week's beef trade impacted the cattle market and beef prices.
Fed cattle traded mostly $1 higher with a few regions posting even better gains.