 ___________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ K O O I M A K O O I M A V A R I L E K T R A D I N G I N C F U T U R E S O P T I O N S M A R K E T I N G I N V E S T M E N T S 7 1 2 . 7 2 2 . 0 0 2 3  |
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Varileks Cattle Call
5-9-25
Cash cattle continue to out perform expectations
of many. Supply of
cattle is still tight with peak demand upon us. Packers are slowing
chain speed down to try catch up on leverage, but producers still
hold the cards.
Northern cash trade was another $5 higher
with $228 hitting a bulk
of the action, and the south followed with a range of $218-221. Grid
trade was also noted with great premiums. The north has rallied $5
per week since $208. It has been many years since negotiated cash
had choices like this last year of trade.
Demand is still strong for beef even with
the higher prices. Further
rationing may need to happen with the next generation of beef
consumers showing a strong increase in consumption. Imports are
substantially up with the need for more grinding meat. Last week I
just heard the rumor that ground pork might be an avenue to mix
with beef to make it more affordable. Though flavor and quality
would be great, there is just something about giving an inch to that if
you are a beef producer.
Prices are high, and it sure is a lot of
fun. However, we are all
nervous handling this many dollars. Nobody knows where the high
is, and make sure to take care of the risk that you need. Wrong
decisions are highlighted quickly with an ever-changing market.
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.
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