<\/p>\n<\/a>Livestock<\/u> –
\nNo major new information to pass along this morning.\u00a0 We\u2019re still digesting the Chinese reopening news.\u00a0 While obviously this is good news for the US industry over the long term, there are still some hurdles to clear in the short term. \u00a0One major sticking point I\u2019m told is traceability of cattle and use of beta agonists.\u00a0 These factors will probably keep volume of trade pretty limited even when the market is \u201cofficially\u201d reopened.<\/p>\n
The beef market might finally be showing some signs of a top after a relatively soft performance on Friday.\u00a0 As mentioned last week, we need to keep an eye on the 50s probably for signs of its \u201clast hoorah\u201d before really having confidence beef has topped.\u00a0 Packer margins have improved, on paper, recently due to the strength in beef and the relatively softer cash trade we\u2019ve seen.\u00a0 Interesting to note that last week\u2019s kill was a bit smaller than expected.\u00a0 Considering the strength in beef and decent margins, one might expect they\u2019d have pushed a bit harder than that.<\/p>\n
Friday\u2019s COT showed a bit of liquidation in the managed money trade but nothing major.\u00a0 The MM position still seems \u201celevated\u201d here and remains something we should be keeping our eyes on.<\/p>\n
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