|
Varileks Cattle Call
4 - 24 - 26
Cattle turned back higher
after a $10 break in live cattle and a $20
break in feeder cattle. Technicals were in overbought conditions
before the drop, so it was a normal move considering we were at
record highs. The recover started Thursday midday and followed
through the Friday close.
The last part of the break
came on news of a walk out by the
employees at the packing plant in Fort Morgan, CO that slaughters
more the 4,000 head per day. Another strike entered the mix, but
this time it was a complete surprise.
Futures rallied partly because
Secretary Rollins canceled her trip to
Arizona that was scheduled for Friday. The Rollins Watch was
delayed for the time being. There is no set schedule for an
announcement about the border opening at this point. It remains in
the dark.
Cash bids for fed cattle
were at $246 most of the week. Some traded
that way, but it felt like most held out for more funds. Anticipation of
a rally in the boxes and tighter numbers after yearlings clean up
were the hopes for higher cash coming. May is typically a great
month to sell cattle with Mothers Day being one of the best holidays
for beef demand.
War news is always in the
front news. Consumers are still eating
beef, and higher gas prices are not appearing to slow us down yet.
Have a good week.
The risk of loss when trading
futures and options is substantial. Each
investor must consider whether this is a suitable investment. Past
performance is not indicative of future results.
|