Cattle markets have been keeping pace in early 2019 compared to the same first quarter period in 2017 and 2018.
John Payne, senior broker of Daniels Trading and thisweekingrain.com, describes the live side as “being on fire.”
The dynamics of the cattle market while similar to the past few years are also fueled slightly by poor wet weather in the cattle feeding region of the U.S. The latest blizzard and flooding events in Nebraska and surrounding states could also have some short-term impact.
Going forward Payne advises to watch what has happened in markets like wheat and cotton, which have a similar structure. “You have a lot of bets being made that the prices are going to go higher, and when the fundamentals change you see that suction as everyone needs to move and sell,” Payne says.
Funds have been putting more money on fed cattle recently, according to Payne.
For what Payne is seeing going forward for the feeder cattle market and potential trade impacts watch the video above from AgDay.