Varilek’s Cattle Call: Crazy

It was record-high cash yet again for cash cattle.  Packers were aggressive in their pursuit to lock up inventory.  The south started with some weaker $2018, but the north took over and rallied cash to $235.  South trade did crawl up to $223 after the cash negotiated north started.  Major packers were bidding the $235 for the final week of June. 

The $235 is the craziest part with June futures trading just over $215.  The futures are in no hurry to close the basis after the fake screwworm story that haunted the markets just a week prior.  Cash is getting away from the packers, and it does not surprise me that they want to buy as many as possible so they can sit still for a while.  Numbers are tight, and producers are starting to sell ahead because of the strong basis.  If you have anything close to market, you can cash in on these bids.  It would be hard to pass up the over $500 per head profit.  Keep selling.

It was month end to finish the week.  Funds were long, and it may have just been some profit taking at the end of last week.  Will it keep going is the question.  Beef prices seasonally top during this time of year keeping traders leery.  Enjoy the moment and trade carefully.

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.