After trading lower through the first hour of the session yesterday, the cattle markets staged an impressive rebound through day’s end, closing $1.70-2.50 higher across nearby live cattle and most feeder cattle contracts. Nearby Dec live cattle futures did manage to trade into fresh multi-year lows, taking out the 2013 lows by two ticks, but close enough that it appears some technical traders were spurred into short covering, with open interest off 2K contracts yesterday. Some support also perhaps stemming from another winter weather event on tap for the Plains this weekend and hope that the Senate will include a COOL repeal in their spending bill that is likely finalized early next week. So now we’re once again left wondering whether this recovery is for real or just another short term head fake that’s disappointed bulls multiple times over the past several months?? Beef values remain weak, particularly the trim and by-product markets. 90% lean trimmings traded down to $1.94/lb this week, a full $1.00 (34%!!) below levels of just five months ago.
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