Varilek’s Cattle Call: Same News
Good day fellow readers. I need something new to talk about, but unfortunately, we have the same news. The cash cattle market is trading from $93-$95 live and $152-$155 dressed. The trade is still not widespread but at least slaughter capacity is running at year ago levels. It may take most of the summer to catch us up from the rough spring.
Our economy health can not be ignored from where we sit with disease all over the news again. The one hope would be for a large spike in demand to help boost the market. Boxed beef prices are breaking giving us hope that beef can maybe get a feature in the marketplace rather than the constant pork and chicken advertisements. Cold storage numbers show we have more beef in storage than a year ago. That report disturbed me as we hear about empty shelves and expensive beef prices.
The fundamentals are still not on our side entering summer. A few feedlots did pass the low cash prices for the first time in quite some time. I will not call that a leverage shift, but maybe we can start to have a few producers standing for higher prices.
Sorry about the lack of news this week, but there is not much exciting to report. The futures market is currently range bound with no enthusiasm to encourage a long speculator to enter. Do what you can to keep your head up and let us not quit fighting for our beef industry. Have a happy Independence Day and I will be back in two weeks.
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.