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Buxton ND | I have not said much on the cattle market for a few months. Feeders have been holding up better then live, the $228 gap still stands. I've read some comments on what guys are paying for feeder cattle/break evens and I just shake my head.
Take a look at the weekly live cattle chart, its been making lower highs and lower lows, since late last year I expect this to continue for some time. How long can feeders hold with live falling ? ? ? Its really no different then any other market, mega new high and the crash and burn in its aftermath. All these market have one thing common and its the spec money.
That spec money,,,the last 7 weeks has been selling live pretty hard. 7 weeks ago they stood at 85k net long, as of the July 28 its @ 20k So even though its takes alot longer to raise a cow then a cob of corn my "We're Leaving" comment applies. We have seen this in nearly every market out there, cattle will end no differently.
Right now I'd say wait for a bounce to make some sales but Friday's report will not help. | |
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