Beef Resurgence Advances Cattle Futures

Cattle futures are back on the rise towards their September record high prices on signs of improved demand for US beef supplies.  Cattle futures gained over $1 in pre-holiday trading.
The USDA reported US meat-packing plants processed nearly 259,000 head of cattle in just the past two days which is a 7% increase from just the week earlier.  Apparently, beef demand is also picking up in the wake of Hurricane Sandy on the east coast as those affected by electrical outages are restocking their storage freezers.

Cattle (futures) prices are finding solid price support due to tight supplies and a strong rebound in the demand for beef,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current cattle futures situation.

The trend for cattle futures has been absolutely sideways – with a down-bias since the record highs of mid-September – as most of the other agricultural futures markets we trade.  I had been probing the short side of cattle futures on “low-risk” opportunities, but if this resurgence is for real, then I will have to allow the cattle futures market “prove” to me its real intentions…

Wishing you the best Thanksgiving Holiday!  Back to the markets on Monday, 26 NOV.

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