Despite the winter weather seen over the weekend in the Panhandles and into IA yesterday, the cattle markets traded lower for most of the session yesterday, finishing with relatively minor 25-90 point losses in the fats and 40-115 point losses in the feeders. It’s arguable how much (or maybe all?) of the storm was priced into last week’s sharp rally and now futures again find themselves holding a giant lead on last week’s $122-124 cash cattle trade. Most expectations for this week’s cash trade seem to be in the ~$130 area, with packers finally again buying for a full slaughter week next week and a spot boxed beef market that has some real upside momentum going. Both the choice and select cutout indexes were up $3-4 yesterday and are a quick $10 off their lows of a week ago, with some analysts expecting an additional $10 this week as the holidays interrupt production efforts. Weather and transportation problems further contributing to the reduced slaughter with yesterday’s total coming in at just 90K head, compared to 111K head the prior Monday.
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.