Picture Perfect Beef Markets?

August 23rd, 2010 Posted in Uncategorized

The fundamental backdrop to the cattle and beef market has been bullish of late, and I thought I'd lend an  image or two to add perspective to the rallies that we've experienced in Live Cattle and Feeder Cattle futures.

"Where do we go from here?" is a top question for anyone involved in a market that has produced parabolic moves on either the upside or the downside. I like to use, as a subset of tools, correlation charts and historical tendencies to help form an opinion to answer that question.

Check these out ...

 

The first two images pertain to feeder cattle, one of the cash market in Ok City, and the next of the October Feeder Cattle futures market. Both indicate the potential for continued upside to the levels indicated on the chart.

The last chart is of the December Live Cattle futures. It shows how these futures have done over various time frames for the past 45 years. As you see, this time frame, too, indicates potential for continued upside.

Feel free to blog or contact me to discuss, Bob