Following Wednesday's limit lower trade, cattle futures continued on that path through most of the session yesterday, trading to fresh contract lows across all months. But making this week even more bizarre was the sharp rally witnessed in the afternoon hours, with the Dec live cattle contract rallying more than 300 points in a matter of minutes at one point. Between the $6+ trading ranges, huge trade volume, and late session rally, you'll find no shortage of commentators this morning asking if yesterday was the blow off low. But for that to confirm, we really need to start seeing some better news out of the spot markets where cash cattle traded as low as $129-130 in the South yesterday with packer bids now backed up to $127-128. Choice boxed beef was also down $3 yesterday and now holds just a $3.23 premium to the select, FAR weaker than the normal $10-14 spread seen this time of year. We revert back to normal $3.00 LC and $4.50 FC limits today, which strangely means the markets today can't even rally back to yesterday afternoon's highs! Literally nothing would surprise me today.
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