Cattle market strength
One cattle analyst says, "I was hearing a bit of chatter (that's all it was was chatter) today about
improved sales at restaurants and saw reports earlier this week of strong
export demand so far in 2010.
It seems to me that this week's rally was caused by supply issues: supplies
are getting tighter in the country and packers were caught short needing
cattle NOW (they were out at 6pm last Fri. trying to buy cattle and OUT
AGAIN AT 9PM LAST NIGHT BUYING CATTLE!!!)
It seems like this weeks $5 move was waaaaay overdone so I also would be
surprised to see this level hold next week."
One cattle analyst says, "Explosive strength in cash cattle and cattle futures this week
Packers were out til 9PM last night buying cattle and paying as much as $98-99 / $154-155
Recent strength in box beef and short supplies found packers needing cattle immediately."
Re: Evidently the 4 to 5
up next week may be shocking to those who thought 98/99 was supposedly way overdone this week.
Comp beef cutouts are over 80% committed 3 weeks and farther out now.
Seems to be a lack of formula forward supply to be had to fill the afore thus this is a seller's Cash market.
Perhaps the $117 cwt cash Mid Oct will come with free oxygen to soften the shock waves of pessimists then.
Rally of 03 started in Aug....actually a more explosive meat diametric now than then ( more global demand, less supplies ).
03 btw was a 50% Net Up off the summer $72 cwt level.
Summer low 010 was 91....could see a comparative $135 cwt by Spring 011.
Re: Cattle market strength
Hey market eye, If they are having to goout that far to get at that time of day and night that tells me we have a very current situation. If that is the case then they are forward buying reducing harvested tonnage now and in the future. That should mean more of an up going forward. JR