<\/p>\n<\/a>Livestock<\/u> –
\nAnother wild ride in cattle futures yesterday.\u00a0 After initially pushing sharply higher, cattle futures broke sharply during the session positing a daily reversal on the spot LCM chart.\u00a0 I fielded a lot of questions asking why the reversal yesterday, and to be honest I didn\u2019t have any real \u201cnews\u201d to report.\u00a0 I simply think it is equal parts market exhaustion and fears of packers\u2019 interest in bidding cattle right now.\u00a0 You might ask why the packer would have any such fears considering they have not shown any up to this point, and that would be fair.\u00a0 However, note anecdotal reports suggest that forward beef sales are starting to slow significantly with boxed beef prices at these levels.\u00a0 The chart below shows the USDA\u2019s data on boxed beef sales volume over the past several weeks and you can see it has really slowed.\u00a0 Perhaps the cutout has reached a point where demand is suffering?\u00a0 Well, if the cutout has reached that level, you can bet the packer is not interested in seeing cattle prices at these levels for long either.<\/p>\n
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