Been reading allot and most say they should be in 162-163 range but tanked friday to 149? anyone have any news on why

www.dailylivestockreport.com

Great FREE report on Ags & Livestock.

Quoting todays report...

Spring and summer fed cattle futures declined the daily permissible limit on Friday (300 points) as market participants were once again disappointed by prices paid in the cash market. In the last two weeks cash fed steer prices have declined by $7/cwt, a larger than expected drop, fueling fears of significant value erosion going into May and June.

wormtrader 

Been reading allot and most say they should be in 162-163 range but tanked friday to 149? anyone have any news on why

I was wondering about this too, as I had my eye on it to go long. Price is recovering somewhat today though.

Cattle prices react in about a 6 month to 1 year delay from corn prices. Essentially, cattle prices are a function of the cost of feed, because that is the biggest variable input cost for cattle. With corn prices down over the past 2 years, cattle prices are catching up on the downside. It looks like a long term bear market now in cattle and hogs.

wormtrader 

Been reading allot and most say they should be in 162-163 range but tanked friday to 149? anyone have any news on why

Cattle prices often show short moves that are hard to understand. But in the long run, the August and October contracts seem to be undervalued for fundamental reasons.

Seasonals also show upwards.

i am short the LCQ P142 and LCV P140.

The same seems to be true for the Hogs.

I am short the LHQ P72.

Best regards, Myrrdin