Snow

Varileks Cattle Call
9 - 12 - 25

The futures are sure flying around with a weaker tone with the first sizeable correction in quite some time. The scary part of the correction is that we are still at very high prices. Producers are willing to sell with large profits on current inventory. We would like to put more weight on with cheap cost of gains, but why not cash in with all of this volatility.

The fed cattle market was $3 lower in the south at $240. It was a great price for them, and supplies remain tight in Texas with the month over month lower placements. With the Mexican border=0 class="yourclass" shut for a longer period of time, the United States cowman has been finally reaping more rewards. The north did not fair as well on cash. Some trade from $237-238 was spotty and harder to come by. Packers were not aggressive. They likely want us to put the extra weight on to make up for lack of supply in my opinion.

Cash feeder markets is where I want to focus my attention for direction. There was mixed reports over the last week on strength. Some sales softened up substantially toward the end of the sale while others were all around lower in the beginning of the week. Latter week we heard of more strong feeder prices to keep us all confused. We are in some historic times with a possible announcement from Secretary Rollins on a screwworm update. Tread safely with buying high priced breakevens. We can not lock in a profit now, but it might not mean to do zero marketing.
It was a sad week with the loss of Charlie Kirk. Let his path motivate you to stand up for Jesus and share boldly. 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.