Slowing Sales Stumps Cattle Futures

There is an emerging outlook that demand for domestic beef is prematurely slowing down.  Cattle futures have reportedly fallen a second straight day on this speculation.

USDA data reflects meat-packers processing just over 370,000 cattle the first three days of this week, which is one-half a percentage lower than this same time last year.  Maybe retailers have fulfilled their beef orders for the upcoming holiday weekend?    

Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, had this to say regarding the current cattle futures situation, “Cash market for cattle has been sluggish in the past few sessions. The recent record high (beef prices) has traders worried that domestic demand will start shifting away from beef and towards cheaper poultry or pork products.”

The trend for cattle futures are both down.  Live cattle futures just rolled over to resume its downtrend this past week, while feeders are still clearly down with no bottom in sight.

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter