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MARKETING
By Bryce Myrick Director
TFB Agricultural Marketing Education
Last month I wrote that feeder cattle were priced way too high compared to cash fat cattle. At that time, November feeders were trading about $1.12 and cash fats were in the $84-$85 price range. The reasoning was that if fat cattle prices did not move higher, then feeders had to come down.
Well today, fats have gone down to $82. What this means is that many cattle coming out of the yard are now losing $100 a head. What it also means is that although November feeders have dropped from $1.12 to $1.07, they are still too high.
Right now it appears that the re-opening of the Canadian border is a negative and will more than offset the opening of the Japanese market. Corn prices are low, but cheap grain makes cheap cattle.
Many factors will affect cattle prices in the next six months, but the thing that is hurting us the most is the continuing loss of our beef demand.
If you would like to have a workshop in your county or have market questions, please call Bryce Myrick at (254) 715-5055.
SEPTEMBER - FEEDER CATTLE
DECEMBER - LEAN HOGS
Fundamentals: Opening of the Canadian border looks negative
Technical
Analysis: Trend - Sideways; Resistance - 1.13; Support - 105
Fundamentals:
Packer margins good—strong demand
Technical
Analysis: Trend - Up; Resistance-None; Support - 65.50
Closed at 52.75
MAY - COTTON
DECEMBER - LIVE CATTLE
Fundamentals: Boxed beef demand continues to erode
Technical
Analysis: Trend - Down; Resistance - 89.00; Support - Broke
below support
Fundamentals: Large world crop
Technical Analysis:
Trend - Down; Resistance - 51.50; Support - None
