Cattle Futures Rise on Domestic Demand Signs

With signs of increased demand for domestic beef, cattle futures have been trading above seven-week highs.  August Cattle futures traded just above $122.15 CWT today before retreating.

Current USDA data says wholesale beef prices – although little changed yesterday – has climbed just over 2.5% year-to-date.  Just last week, cattle futures spiked almost 3% and was the biggest surge in beef prices in almost a year..

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current cattle futures situation, Cattle Prices are reflecting a tightening supply. We had a nice rally today and we failed later in the day.”  Moreno added, “We are knocking on the door for higher prices soon.”

The trend in cattle futures remains down, technically, but another few days of trading above their 18-day moving average could change the trend to up.  I will await a clearer picture to unfold in cattle futures before initiating positions – let the market prove to me what it wants to do…

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