Granstra’s Cattle Call: What a week for cash
CASH! What a week again. Cash prices in the south were as high as $232 and $242 in the north. The last few weeks there seems to be more forward pricing. This week, $240 for the 1st week of July was the best that I have heard. This continues to pull cattle forward, adding to the supply part of this equation. Huge cash basis keeps fueling the fire as well. If these forward bids aren’t buying any calves yet, they will be very soon. Where are we going to find supply to stop the cash rally?
Open interest in futures continues to remain at record levels. Short and long term technicals look as friendly as ever. Everyone wants a piece of the action at this point. The trend is your friend!
Feeder prices break records daily. Marketing decisions are difficult. I encourage producers to set goals, make a plan, and stick to it. These markets are not forgiving. In my opinion, no one knows when the top will be in. I would rather have some marketing done on the way up than on the way down. We know what down days can look like in this market and its not pretty.
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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.
