Cattle futures prices have sunk $10 within a two week period this month amid ample beef supplies and sporadic demand. Cattle futures have bounced higher a second day, albeit up .20c currently trading near $115.25 per cwt at the Chicago Mercantile Exchange.
Beef prices for both cattle contracts (“live cattle futures” – animals ready for market, and “feeder cattle futures” – animals transitioning from pasture to feedlot for fattening) are equally under selling scrutiny because of much overall supplies with only sluggish domestic demand and exports. The outlook ahead is expected to reveal even more animals working their way to feedlots for near-term marketing.
Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, shared her fundamental view of the cattle futures markets by stating, “The cattle (futures) market appears to be at a major crossroad with near-term direction.” Bourbeau adds, “The sudden drop in feed prices recently has helped support cattle futures only little.”
The trend in cattle futures is down with lower lows made Monday, late April, & mid-December, so a possible bottom could be near, or a major breakout lower may be right around the corner. Cattle futures prices, although at multi-year lows, are still historically high well over $1.00 per pound.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.