Saturday, August 10, 2013

Live Cattle/Lean Hogs - Trade Update

After the news out of Tyson Foods yesterday it was always going to be interesting to see how the cattle market backed up today. And for bulls, it seems to have lost its steam.

Cargill came out and said that it would continue to buy cattle that had been fed with Zilmax, so the talk is that much of reaction is now really built in - and that it was even an over-reaction in the first place.

It's now a matter of if any other meat processors begin to follow the Tyson lead.

Friday's COT report also showed managed money getting net short for week in cattle and long in hogs. So while our spread tinkered on the brink we managed to survive and that might lead to a little bounce.

For now we can maintain the current position.

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