Markets Now: China Hype Creating Imbalance in Cattle Markets
By Tyne Morgan, US Farm Report, Host
via AgWeb - Apr 5, 2019
Live cattle futures have faded off the highs seen in mid-March – a sign one analysts thinks is a signal the seasonal price highs may be already baked in for now.
“With the price action we’ve seen for three weeks now, I think it’s pretty obvious the seasonal top is in,” said Don Close of Rabo AgriFinance. “At the rate we’ve declined off that $128, $129 high, do I think there’s another opportunity when we reach the peak of that grilling season – April, May- to run back toward the top again? I think so.”
If prices climb as seasonal demand picks up, producers should be aggressive in selling, according to Close. However, the live cattle market isn’t his biggest concern right now. Instead, it lies within the feeder cattle side of the markets. Hype surrounding China – and the added demand it could create- has really dominated that market, he adds. Hope that a deal with China will happen – one that includes beef trade - is something Close thinks is driving prices.
“I’m a little bit concerned about the conversations around China, and that the momentum is creeping into the feeder cattle markets faster than the live cattle markets,” Close said...
more, including video report [1:15 min.]