Varilek’s Cattle Call: Looking for the light
Another week of being run by Covid 19. Is there light at the end of the tunnel? We all really hope so. Let’s just take it a day at a time and roll with the punches.
The cash market remains like weeks prior. With decreased slaughter capacity, you can just hope that you get a bid. Some showlists are on their third week of not getting cattle sold. We are backing up but have no choice in the matter currently. Formula cattle make up most of the head sold in the United States, and the packer is having a hard time keeping up with the committed cattle they already have. A slaughter week of 536,000 is more than 15% off the pace from the week prior. Spot bids for a few cattle at $105 live and $168 dressed is all I have to report on extremely light trade. If you ever gave a packer buyer a favor, now is the time to call in that favor.
Updates on packing plants changes by the minute. Some plants that had been closed will and are open for business while new ones are closing temporarily or slowing down the chain. It is a long list to keep tabs on but be willing to make a snap decision once you receive a bid from one of them.
We remain in trying times for the foreseeable future. One ray of hope is the thought of reopening the economy. None of us know how far away reopening is but just hearing of possible plans in the news gives us something positive to think about. As always, keep your chin up.
Scott Varilek, 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.
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