Re: NE traded another 6,000 head at $154-155
Well if you have cattle that are hedged, at least the basis is good. Packers are buying cattle with extra days and lining things all up. Why? Well when the basic boxed beef is above $167 on the choice and around $162 on select, it is a no brainer. They are making money hand over fist and if they can continue to buy choice cattle for $7 to $8 below select beef prices, I don't see much slowing them down.
Guys that are hedged will keep selling cattle and take less money as long as the basis stays good. Basis will narrow as first notice day approaches.