The cattle markets sat at limit higher for most of the session yesterday, before fading through the afternoon hours. Most active Feb futures came off those limit highs by $0.85 and Jan feeders by $1.00, after a sharply lower print in the afternoon boxed beef markets. Feeder cattle futures were also pulled by a quick $4.46 break in the feeder cattle index, which now sits at a $5+ discount to nearby futures. The choice beef cutout was off a sharp $2.86 and to fresh 28 month lows, following last week’s 590,000 head slaughter total, our largest in more than a year. Where’s demand? And when does retail featuring begin to show consumers the much lower wholesale prices?? This afternoon’s Cold Storage report is again expected to show record large beef stocks in freezers, a function of the expanding production, big imports, and reduced movement into consumer channels. There were five new deliveries tendered at Dodge City last night, our first delivery interest in a week. Expanded limits remain in place today, but I doubt we’ll need them with futures expected to open softer.
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.