Snow

Varileks Cattle Call
6-27-25

The cattle futures had a sharp rally Friday after a 2-week break from record highs. It really did not have alarming reasons to drop other than oversold conditions. Cash has been on the break after packers did a major inventory push a few weeks prior.

The south traded live cattle in a range of $222-225 with the north at $230-233.50. Country sales were spotty with a more aggressive attitude from producers. These prices are still big historically, and cattlemen understand that. It is ok to miss the high with the large amount of profit turning per head. Keep selling. The basis is outstanding, and I had my doubts that we would make money on this turn of cattle.

The cattle on feed report did not yield much movement for prices. Tight numbers are still here, but growth is on the horizon. If we step into a growth pattern and the Mexican border=0 class="yourclass" opens, we could see more risk lower. Packers that want the leverage back are getting closer in my opinion. There is plenty to worry about as always, but it feels good to be making money doing what we love. 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.