Cattle Futures Boosted by Supply Concerns

For the second time in the past three trading session, cattle futures closed up on signs fewer cattle will be available for slaughter next month.  Cattle futures have remained high priced because of this prolonged problem.

The USDA reported last week that feedlots have received 6% fewer animals since this time last year.  Because of this steady decrease, cattle futures prices climbed to a record $1.345 per pound one week ago.

Kevin Riordan, director of research at Capital Trading Group in Chicago, stated today regarding the current cattle futures situation, “A substantial reduction in the amount of contract cattle currently available will likely keep cattle (futures) prices firm as we head into the first quarter of 2013.”

The trend for cattle futures remains up and we are currently long this market.  No sign of a top for cattle futures just yet…

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