The cattle market finished last week on a positive note, with both live and feeder cattle futures posting triple digit gains and, if prior Mondays are any indication, we may follow through on those gains this morning. But the real question is whether the cash market can at least stabilize, after getting torched for roughly $30 over the past eight weeks. Packers are doing their part and put together another "large" slaughter total last week of 571K head, down just slightly from the 574K the prior week and 578K two weeks ago. Boxed beef prices remain under pressure as a result, down $6 in the choice cutout index last week, along with the fresh lows in the trim and by-product markets. Do remember that the nearby October live cattle contract goes into the delivery period beginning tonight. Current futures at $123+ and last week's cash near $119-121 would seem to invite some degree of delivery interest especially in the North. Interesting to see CFTC data show the managed money category as net buyers of live cattle last week despite futures being down $8 during that span??!!
Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.