I just received this from my broker
Cash is called weak to lower again today. The carcass has lost $10.00 this week. Not much else to say. If the product can’t perform I don’t expect futures to perform strong. The kill on both Tuesday and Wednesday, reaching 479k, is a new daily high since the slower chain speed rule went into effect. Demand can’t seem to handle it. We’ve been buying corn and hedging hogs.
Life is s struggle in the live cattle futures market. We’re back down today. Feeders are sharply lower and we’ve been calling all clients that have feeder hedges on the book and covering part of these hedges. Looking at the Nov FC, consider 16800, the old highs the new support. Feeders are on their way toward 190 over the long term, IMO. Beef is expected to trade lower into the holiday. Who cares, packer margins remain fat. I’m bullish.