Feedyards have moved from having to wait for cattle to be lifted for weeks on end to a situation where the market is very current. This has put a little needed marketing power in the hands of feedyards instead of the packer. The strong basis has beena n excellent incentive to sell cattle on schedule or even ahead of schedule. This improvement in bargaining power is what is giving the feedlot the “balls to hold firm with their asks. Sooner or later one will have to give but it’s considerably different than having your back against the wall.
Enjoy my discussion with Shaun in the latest edition of the Beef Market Update. If you cannot see the audio player above at the top of the post, CLICK HERE