Cattle

Quite a 2 day period in the cattle complex .Feeder cattle has been limit up for 2 consecutive days(9 handles) and Live cattle has been up close 5.5 handles.Live cattle has been on a tear for the last 3 weeks trading some 13 handles or 11.8% higher during that time period.Feeder move not as spectacular as the live, but it has been pulled along for the ride.Cattle weights have been dropping for the last 5 weeks less weight=less beef.Boxed beef,measure of retail demand has moved higher by $12 over last 3 weeks.lastly and most importantly the end users,commercial positions in the cattle complex are caught very short.Both They were hedging for lower prices as all end users normally do and this has stung them.I can only follow Spot market on twitter and today there was a real sense of panic as the Spot trade started at  $135   and Moved all the way up to $140 with commentary saying few sellers were evident.Both feeder and Live cattle commercial positions are the largest net shorts on record.A squeeze makes perfect sense.

I worry once the squeeze is done markets will drop ,as we know.The million dollar  question then is when?

feeder cattle cahrt

fee

Live cattle chart

live

 

 

 

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