Varilek’s Cattle Call: Plant Watch
The cattle futures continue to fall amidst the panic we have come to know in 2020. We will not soon forget the events that have transpired across our nation and world. The situation is hitting home and bringing on challenges in how we live and stay afloat financially.
Daily swings in the market come and go with most of the recent news circling around packing plants and how many workers are present. When news of a possible issue at a packing plant starts, it spreads like wildfire through traders’ hands with sharp breaks to follow. In my opinion, if the packing plants stay open, we have hope from these price levels. However, if we continue to see any further closures, all bets are off.
Cash bids were hard to find last week. The fed cattle exchange toted a few 113 trades in Texas, but the north is becoming slightly desperate to find a bid. Steer carcass weights remained more than 30 pounds higher than year ago levels. Producers were wanting to clean up the showlists but did not have the bids to do so.
The cattle industry remains in a breath-taking situation, and I wish you the best in navigating your way through the rocks. In the coming weeks I will keep you updated on industry topics being tackled by various cattle organizations. Many issues are of top priority to keep the cattle industry as strong as we know it to be. Keep your chin up and eat beef.
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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