The cattle markets opened higher yesterday, attempting to follow through on the strong gains seen on Tuesday; however, the strength was short-lived and futures ultimately finished mostly $0.35 to $0.70 lower in the fats and $0.35 to $0.95 lower in the feeders. Some might point towards the losses in equities as a cause for the losses, but the charts don't necessarily match up... certainly, not like they have in recent weeks. More than anything, I think the market lacked much cause for its big gains on Tuesday and yesterday's declines seemingly removed some of those from the markets. We have yet to see any cash cattle business this week, it doesn't even sound like packers have been showing many bids. With the big gains on Tuesday and the packers somewhat short bought, there was a sense that we could see cash cattle values hold steady or even firmer this week, but this lack of activity, combined with the recent weaker trend, seems to be creating some nervousness about just who has the leverage. Looks for a lower start in the cattle market this morning.
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