Varilek’s Cattle Call:  Continued Cash | TSLN.com
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Varilek’s Cattle Call:  Continued Cash

The cash market stayed strong but on limited numbers.  Showlist were running tight so the packers did not make a run at too many purchases in my opinion.  We finished the week with $159 trade in Nebraska for the high of the week.  That was not up and down the road offered, but did clean up a yard’s list.  The south opened the week at fully steady with $155.  There was a dressed bid of $249 that was hyped up, but with a 63% yield that is only $156.87.  Also, the dressed bid will have to minus the freight to the plant.  It did not sound as exciting to me.  We might here more dressed bids in the future with a poorer yielding yearling crop with possible decreased yard conditions.

The futures market finished on the plus side but is not trading with much urgency to the cash news.  It might be a little frustrating for bulls that want instant gratification.  The basis is positive and cash trade is higher than the first two months of live cattle.  That is a sign of strength if it can be maintained.  For the last few years of optimism, the cash has been disappointing bring a correction to the front month.

The corn market saw a set back breaking support of $6.50.  The basis may be strong in feeding country, but there is a lot of corn in the eastern corn belt.  Deliveries on the December futures put a damper on the corn futures, and lower wheat trade did not help.  South American dry weather was still a bright spot for the grains.  Soybeans did have a significant rally penciling for that prior to a sharp sell of on Thursday.  Have a good week.



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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