Varilek’s Cattle Call: Labor Day Buying | TSLN.com
YOUR AD HERE »

Varilek’s Cattle Call: Labor Day Buying

Live cattle cash trade saw an uptick to start the month of August with northern trade gaining a couple dollars over the previous week. The south stayed around $136 live but the more independent north saw trade in the mid-$140’s. Some of the higher cash prices were taken delivered to the plant. Those trades did not have to be reported and will not make a price reported category. This was not a new philosophy for packers to keep some of the higher cash trade from carrying over to formulas. Victories for the independent cattle feeder have been few and far between over the years, but this seasonal Labor Day buying is helping.

Optimism rages on the cattle industry with significant increases in heifer and beef cow slaughter this year. Even the placement numbers still show heifers heading to the feed yards. It is creating wild times, and all our marketing plans could be challenged in the years ahead. Tread carefully so you can enjoy the ride.

Open interest in the live cattle futures has been very tight with lack of interest from fund participants. Last week there was finally some life with a decent increase in the open interest on Wednesday. The futures have been climbing slowly so if traders want to start diving in now, it could get western. Just beware that packer interest in cattle can be heightened during the beginning of against and tends to get sloppy closer to the end of the month into September. It sure could be a year like now other, but I do not want to ignore the seasonals. Have a safe harvest. Silage chopping is right around the corner.



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.



 


Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.

User Legend: iconModerator iconTrusted User


Comments

0 Comments
Loading comments...