The cattle markets started the new year with a mixed performance yesterday, trading sharply lower early in the session before recovering by midday. Global equity market weakness, led by the Chinese, kept most commodities under pressure, but cattle futures not coincidentally put together a quick rebound about the time the morning boxed beef report showed wholesale beef prices sharply higher. By the afternoon tally the choice cutout was up $5.47, reportedly the largest one-day jump in more than a decade. Early talk is that this week’s slaughter total should fall somewhere in the 540-545K head range, disappointingly below the 556-586K seen just prior to the holidays. This will keep the beef pipeline clean longer than we’d expected, but also perhaps limit cash cattle market upside potential this week?? In addition, this week’s showlist count is unanimously larger than a week ago. Look for a firmer start this morning.
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.