Cattle futures have climbed back higher and apparently had taken ground beef prices with it to all-time record highs. The average price of ground beef almost hit $4.24 per pound, while feeder cattle futures have come within .10 cents of their all-time highs earlier this week at the Chicago Mercantile Exchange.
In August of last year the average price of ground beef topped $4 a pound for the first time, however, the Bureau of Labor Statistics (“BLS”) released revised data yesterday reporting the new record high for ground beef to be $4.238 per pound in February.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental view regarding the current cattle futures situation by stating, “We’re still seeing the repercussions of culling the domestic cattle herd in 2013.” Plotkin adds, “Cattle producers are adding to their production, but supply is obviously outpacing demand.”
Cattle futures trend is up with no top yet in sight. I am looking to reset a long position that was offset just before Friday afternoon’s “cattle on feed” report with cattle futures now pulling back.
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.