Brad S
Well-known member
I'm sure everyone is happily aware of the price buildup in fed cattle. Who's thinking of shorting out some protection?
The Chinese market may begin accepting us beef. That alone should be plenty price protection - the way it's working, china is getting Aussie beef that otherwise would be here. The Chinese are now consuming more than 10# and the curve is pretty steep.if/when they eat North American beef, their consumption should really expand. Whether it's Aussie/Brazil or North American, Chinese pull is a true friend to producers, and they may exert sufficient support to protect against the market getting sour.
Feeders have humility - near term higher prices and out term lower prices have producers getting relatively current - as current as cheap corn allows. All the talk of the wall of cattle in the early summer is keeping producers humble. Also, hot hot weather isn't conducive to extra days on feed. Heat and mud get pens current. But if weights back up the market like city drivers in a traffic backup, some advanced sales will look smart.
The scariest boogeyman might be political. I wish trump would stick with "we need trade, now let's get it right."
Of course the economy is fragile and terrorists continue to plot. I'm more worried about the us enonomy.
Corn is below cop, but nobody is cutting back. I see market scares in July as an opportunity to short - corn growers and their mad science are just too prolific.
The Chinese market may begin accepting us beef. That alone should be plenty price protection - the way it's working, china is getting Aussie beef that otherwise would be here. The Chinese are now consuming more than 10# and the curve is pretty steep.if/when they eat North American beef, their consumption should really expand. Whether it's Aussie/Brazil or North American, Chinese pull is a true friend to producers, and they may exert sufficient support to protect against the market getting sour.
Feeders have humility - near term higher prices and out term lower prices have producers getting relatively current - as current as cheap corn allows. All the talk of the wall of cattle in the early summer is keeping producers humble. Also, hot hot weather isn't conducive to extra days on feed. Heat and mud get pens current. But if weights back up the market like city drivers in a traffic backup, some advanced sales will look smart.
The scariest boogeyman might be political. I wish trump would stick with "we need trade, now let's get it right."
Of course the economy is fragile and terrorists continue to plot. I'm more worried about the us enonomy.
Corn is below cop, but nobody is cutting back. I see market scares in July as an opportunity to short - corn growers and their mad science are just too prolific.