The cattle markets traded higher from the start yesterday, with a seemingly growing number of traders/analysts/commentators now calling the bottom. This as the boxed beef market finally showed some signs of stabilization yesterday, with the choice cutout up a modest $0.20 on the afternoon report, which was the first daily gain we'd seen in almost a month. One day doesn't make a trend, though, and we'd still view stabilization in the cash cattle market as more important for the industry. We've not seen any cash trade yet this week, where early packer bids in the north were shown yesterday at $182 dressed, $5 lower than the averages last week. I also sense the industry was surprised with only 15 deliveries posted on Monday night, perhaps signaling there are fewer "unsold" cattle than we'd feared?? Unless deliveries were limited by the fact that we just don't have cattle that can meet the weight limits.... Those 15 loads delivered Monday night were all retendered, none demanded, and another new 13 loads were posted in Dodge City last night.
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.