Cattle Bat Higher Prices Through Closing
The complex jumped around Wednesday but ultimately left cattle contracts trending higher while lean hog contracts closed lower.
Holidays come as bitter-sweet days for market participants as the shortened weeks throw off normal trade. Wednesday’s trade was mostly uneventful other than the baffling bullishness that the cattle contracts are pushing.
As a “Designated-Bear” (proudly coined by John Harrington), I’d love to believe that these higher prices aren’t dangerously volatile, but knowing the raw facts of the industry’s current make-up makes it hard to believe that this green close isn’t far-fetched when fundamentally the math just doesn’t add up. Hog prices closed higher on the National Direct Afternoon Hog Report, up $0.20 with a weighted average of $28.66 on 7,670 head. September corn is up 9 cents per bushel and December soybean meal is up $8.70. The Dow Jones Industrial Average is down 77.91 points and NASDAQ is up 95.86 points.