|
Varileks Cattle Call
12 - 12 - 25
Cash is king. It still feels great to have
that story back. We are
seeing strong sales in the barns and country. It is a true reminder of
the tight supplies we have in the United States.
Feeder calf trade was the first boost we
saw after the negative
stories corrected the cattle futures from record highs. Once the water
calmed, it was off to the races again. It felt like more than year end
spending, but yes, some could have been that.
Live cattle finished the week with a cherry
on top. Cash started to
rally on Wednesday night and traded $230 in the north and south
Thursday. A regional started the push and the majors followed
quickly after. It was good to see many packers participating. We
have seen these pushes while they make a big inventory grab so
they can try lay low for a few weeks after. Cash tends to be slower in
the week following, but producers will look to ask higher next week.
Boxes are not trading as stellar as this
spring and summer. There
can be a seasonal push before the holidays, but we are still waiting
to see that happen. It could be softer demand or just packers and
retailers scared to move it higher with political pressure of higher
beef prices. I believe demand is still strong, but consumers are
facing higher prices across the board. Maybe their pockets are not
as deep as some think. After all, Christmas season happens to drain
mine a little more than I like. Have a good week.
Kooima Kooima Varilek Trading
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.
|