Cattle Call: Volatile and shy

            The market is in high anxiety mode at the moment. Yesterday and today’s action represent that well. Cash was grinding higher again mid-week. $345 and $350 traded in Iowa. $222 was bid. Cash feeders continue to climb, yet the market shows no sign of optimism. There is too much news in the headlines regarding beef. Rumors fly around daily. Everything from more regulation in beef imports/exports to plant closures. Funds have reduced their presence for this exact reason. Today’s talk about stopping exports to Canada and Mexico makes me nervous. North America is increasingly integrated in the beef business, like it or not. Initial reactions to rumors like this can have lasting impacts.

            I have an idea that this level of chaos in the news might continue till mid terms or until a better story comes around. Until those changes, I anticipate futures to be very volatile and shy of the market.

            I would be careful placing cattle with the idea of hope and wait for higher prices. There absolutely is downside from here.

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.

Dallas Granstra