Beef packers continue to hold a much smaller position in terms of the cattle they have purchased for forward delivery. It would appear that packers perceive little risk in terms of their ability to source cattle. After all, on feed supplies of market-ready cattle are ample and will likely remain so in the next two months. Limiting the number of cattle bought on a contract basis offers flexibility. If demand hold up, then packers can go out in the market and buy more on a negotiated or formula basis. However, if demand dries up, be this because exports slow down or retail features change, then they don’t have many cattle on the books that they need to take delivery. So far it appears that the combination of robust beef demand over the summer and the smaller contracted supply has helped bolster overall fed cattle prices. –CME Daily Livestock Report Read more…