USDA's bearish on-feed report spooked bullish specs in the cattle market, but fundamentally, the market looks as bullish as ever.
USDA's bearish on-feed report spooked bullish specs in the cattle market, but fundamentally, the market looks as bullish as ever.
The bearish surprise from last week's USDA Cattle on Feed report hit cattle prices hard to begin this week. While there will continue to be uncertainty and volatility, analysts still see fundamentally the cattle market being in a bullish situation.
USDA extended the deadline for the Milk Loss Program to Oct. 30. The program pays for milk dumped due to certain disasters in 2020, 2021 and 2022.
The fundamental stronghold that the market has possessed through 2023 hasn't changed, but it seems like the closer we get to 2024, the more external pressures continue to build. The attack on Israel by Hamas on Oct. 7 just increased the pressure.
Supplies of market-ready cattle are supposed to grow increasingly thin in the fourth quarter of 2023, which could ignite another rally in the cash cattle market, but managing supplies isn't only done from a headcount perspective. One must consider what these cattle are weighing...
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