Printer Friendly


Position Monitor


Futures suggest a short-term top is in place for fed cattle. But bullish long-term fundamentals argue against hedging weakness. Continue to carry risk in cash as price should quickly recover.
 Feds Feeders

III'07 0% 0%
IV'07 0% 0%
I'08 0% 0%
II'08 0% 0%

Fundamental analysis

Cattle futures failed to sustain trade above $100.00 and turned lower in technical-based trade to signal a short-term top. The top in cattle futures is expected to weigh on cash cattle prices near-term, although heavy pressure will be avoided unless the boxed beef market collapses. There are concerns beef will struggle to compete against cheaper-priced pork near-term, but tightening feedlot supplies make it unlikely there will be a sharp collapse in beef prices. As a result, the downturn in both live cattle futures and cash cattle prices should be short-lived. Bullish long-term fundamentals mean there's no urgency to hedge weakness, but a recovery back to the $100.00 level in futures would be a solid hedging opportunity.

Daily December Live Cattle

Trend is choppy to higher.

Bulls' target on the next bounce will be the contract high of $101.45. Buyer interest above $100.00 has been limited.

Violation of the uptrend leaves support at the August low of $96.50. A drop through that level would open near-term downside risk to the June low of $94.00.
COPYRIGHT 2007 Farm Journal Media
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Pro Farmer
Date:Oct 6, 2007
Previous Article:Isn't it too early to talk 2008 acres?
Next Article:Hogs.

Related Articles
FDA announces expanded safeguards against mad cow disease.
Cattle call.
Cattle's call of the wild: domestication may hold complex genetic tale.
How to Raise Cattle.
Harvest pressure on corn; cattle and hogs struggle with supply.
McCormick Company.
AgDay TV celebrates 25th year.
The Clint Eastwood question.
Is your sugar vegan? An update on sugar processing practices.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |