Varileks Cattle Call

5 - 23 - 25

Another week of recovery felt good in the cattle futures after the two- day smash the previous week. Cash was king. We have been able to rely on that for quite some time, and it felt good. Live prices set another record with some $230-231 live in the north. It wasnt as wide spread trade, but one major participated alongside a few regionals.

In other news, the Mexican border is still on the front. The border may be shut for a longer period of time than first anticipated. The screwworm issue is not under control in Mexico, and the United States is halting all cattle from coming across. Last week the news had a feel that it could be an extended period of time before it opens. It was rumored from month to month or even the end of the year. That will add a boost to American feeders that already hold a tight supply. The southern placements are lower year to date and could still struggle to pick up the pace. That is always a question whether a packer will close a plant or not. I have to believe this will put further strain on southern plants.

The government is finally trying to stop the subsidy capture that the market has become accustomed to when using LRP. It is a great move to start some language that it will be illegal to start the new crop year. LRP is not designed for producers to just capture some taxpayer subsidy to help add money to their bottom line. I hope you all had a blessed Memorial Day, and 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.