Feeder cattle futures spiked higher this morning after a “limit-up” session yesterday most likely on the Canadian beef scare. The ag-company Cargill has recalled all ground-beef products sold in Wal-Mart stores (under the brand name “Your Fresh Market”) from British Columbia to Manitoba, but before realizing the entire situation cattle futures had spiked higher.
The good news for consumers is that no illnesses have been reported so far in the food-safety investigation underway while the 31,000lbs of beef packaged at Cargill’s Calgary, Alberta plant are being inspected. Cattle futures have since retreated $2.50 from their highs today.
Laura Taylor, a senior commodities broker at RJO Futures in Chicago, shared her fundamental analysis insight regarding the current cattle futures situation by stating, “The fact that Cargill and beef inspectors have this situation ‘by the horns’ should take the scare out of cattle futures trading.” Taylor added, “Thankfully no beef consumers were harmed by the products sold, and that too should be a relief in the cattle futures trading pits.”
Cattle futures trend remains “up,” but is at a crossroad. Cattle futures came very close to turning the corner (to “down”) last week until the Canadian-beef scare was realized over the weekend. These market require extra supervision lately…and I’m on it.