Find below a seasonal grid for front month cattle contracts  Average net changer per month over the last 5 years.

LC avg

After down months for August and September  the Winter months see Cattle prices on Average increase.This seasonal pattern may be the reason for Speculators to increase net longs in cattle over the last 3 weeks after decreasing them for 3 months,(see below).Winter brings lower cattle weights  and possible destruction of herd due to winter storms thus the reason for historical bias for higher prices.Spot trade jumped on Friday  but today’s Box beef values  were unchanged.Market waiting to see if increase in Spot prices has/will  cause box beef prices to be forced higher.

cattle longs

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