A week of recovery in the cattle futures was needed after the debacle that was in the stock market. It was nice to see fundamentals climb back in the driver seat briefly to provide some recovery. Cash and futures prices responded well once the stock market stabilized.
The live cattle contract saw massive exit from traders during the break. Longs and shorts were ripped up due to the volatile swings. Many traders headed for a neutral position while the waters settled. Now, we finish the week on a positive note with higher cash and futures. The stock market is still not completely stable, but cattle are slowly divorcing themselves from outside money movement. The open interest is slowly crawling back after the large liquidation from all traders.
Cash cattle traded at $212 in the north and $210 in the south after steady bids were passed. Leverage was in the producers’ hands, and it felt evident that packers needed cattle. Demand has been staying solid with peak grill season upon us. Just try get the wind to settle down a little if possible.
I am wishing everyone a Happy Easter. Jesus died and rose again giving us a gift that we do not deserve. Thank you Jesus. Have a good week.
Kooima Kooima Varilek Trading
The risk of loss when trading futures and options is substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.