Live Cattle: Apparently, the AI beef was an April fools' hoax, and I fell for it hook, line, and sinker. I sincerely apologize for reprinting the farce. Nonetheless, cattle futures were able to fill in the tiger trap a little more today. The new contract highs in June and August are well needed, but not nearly enough to offset input costs. Corn was a tad better, but diesel fuel up another three cents today. Any gains by fats though were offset by the higher feeder price. In my mind's eye, it appears as if the battle is between the cattleman and the economy. Most foresee some form of recession, or weaker consumer sales as the inflation continues to rob consumers of disposable income. All the while, cattlemen continue to bid in a manner that suggests no concerns at all of the economy, or consumers ability to continue to pay higher and higher price for beef.
Feeder Cattle: The new contract high in the January feeders has appeal to begin laying off what may be calves now, but feeders in January. I understand this is far off and the simple argument to is that if there are no cattle now, there sure won't be in January of next year. As I continue to expect consumer demand to quell, or actually already has with no way to discover due to the manipulation of slaughter, there may not be a need for as much beef production, or cattle production. I can't help but be a little argumentative when the industry is dead set on inflating prices of cattle and beef indefinitely, all the while the current administration's attempts to curtail the inflation.
Corn: Corn was soft but closed on its highs.
Energy/Bonds: Energy was higher today. The reversal in energy prices leads me to expect a higher trade. Bonds made a new high today and then sold off abruptly. Keep a watch for higher bond prices in an attempt to lower some rates on lines of credit.
Christopher B. Swift is a commodity broker and consultant with Swift Trading Company in Nashville, TN. Mr. Swift authors the daily commentaries "Mid Day Cattle Comment" and "Shootin' the Bull" commentary found on his website @ www.shootinthebull.com
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