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Ridgway, IL | Look at april 19 live cattle making new contract highs today at 125cwt....
Carry continues to get pulled out of the market, i.e. less and less incentive to feed cattle for more days. Even with the largest volume of animals being killed since early summer, the choice cutout is holding up extremely well at 212-215cwt. These are NOT bearish indicators for the cattle market, imho.
Harvest weights are sure to come down, which is seasonal. I believe the seasonal trend is to see the market pull back from now till xmas, then rally into the first half of Jan. Is there 5$ more here to be gained? Will we see 130 fats for first quarter? I need to market 6-7 more loads fats for april. I feel obligated to start scaling up at 126 just to keep the ball rolling. The cattle we have placed against mar/april mostly breakeven at 116-19.
I think we have turned the corner on the calf market, higher prices to come.
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Contract Highs -- april live cattle
