Varilek’s Cattle Call: Unprecedented Times
Let’s wrap up another circus for the week in the world markets. Uncertainty and fear remain the number one focus for most of us. We can all agree on one thing… none of us know what to expect next when it comes to futures trade. The day to day news keeps everyone on alert with wild swings in the daily markets.
We do know that grocery store shelves have been cleared and are longing for beef. The packer margins are firmly into the green with boxed beef climbing throughout the week. Cash prices are firming with $112 bids from packers. Many producers are trying to band together to demand higher prices by asking $115-$120 for live cattle in order to try capture more of the pie.
The sharp break has many producers on high alert regarding changes we can make to better suit the beef producer. Packer margins staying green while cattlemen suffer has raised several ranchers blood pressure. Many proposed changes have been flying around with politicians and cattle organizations in a short amount of time. It is a good time to be involved, and so far, I am glad to have seen many organizations band together for solutions.
The uncertainty of financial situations is on many cattle producers’ minds, and I hope hasty decisions on cattle industry changes are thought through with a clear head. Enjoy your family or extra part time help while school is closed. Maybe with all of the worry in the world, we are reminded of the One who truly is in control.
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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