Does anybody believe that the bloodbath in cattle is all the result of the Kansas fire? If that is true, seems way overdone to me. I know the cattle slaughter runs like a fine tuned watch but ten buck off of feeders in two days! Excuse me while I scratch my head.
A very Warm Welcome Nick!
Thanks for bringing this to our attention.
I haven't traded cattle for over a decade but will try to catch up .......incredible!
https://www.drovers.com/article/cattle-markets-hammered-monday-tyson-fire-news
https://www.drovers.com/article/overdone-cattle-markets-continue-retreat-after-tyson-fire
Cattle markets continued reeling Tuesday on news Tyson Foods was forced to close its Holcomb, Kan., beef processing facility due to Friday night’s fire.
Tuesday saw both Live Cattle and Feeder Futures close substantially lower.
The front-month Live Cattle futures closed locked down their daily limit losses of $4.50 and set contract lows today. The daily expanded trading limit will be $4.50 again on Wednesday. Meantime, November feeder cattle futures closed down $5.60 and notched a contract low. Feeder cattle futures will also see expanded daily trading limits on Wednesday, at $6.75.
These aren't the greatest price charts but they show huge support down here from the late 2016 lows.
We had reversed higher(in the October-which is what I follow-the charts below are August/front month) but it looks like $100 was very tough resistance and there were lots of sellers and it was a dead cat bounce.
Technically, I wouldn't want to see us below those lows from 2.5 years ago.
Have no idea where fundamentals are in this market.
This is 3 weeks old but sounded bearish then.
Here's an overview of the market from earlier this month(isn't worth anything in predicting where this short term spike is going to be resolved at)
United States Department of Agriculture Economic Research Service
https://www.ers.usda.gov/topics/animal-products/cattle-beef/sector-at-a-glance/