CME cattle futures had a quiet, but impressive rally yesterday, posting an outside day with a higher close in front month Aug LC. Today, after choppy early trade, better-than-expected prices on the Fed Cattle Exchange on-line fed cattle auction buoyed futures to new highs.
Bears are focused on the typical July bearish boxed beef seasonal and what is viewed by many as more-than-ample supply of market-ready fed cattle between now and Labor Day. Bulls are generally hard to find. Yet futures continue to act pretty good, all things considered and now cash prices are finding footing near last week’s $117-118 trading range, with a few cattle bringing $118.75 on today’s FCE.
Source: The Beef Read