Quite a bit is happening with the economy already this first full week of January.
The Dow Jones fell after topping the 29,000 mark Friday. The fall came after the U.S. economy added 145,000 jobs in December. Some economists expected the number to be 160,000.
However, some market analysts say a climbing stock market may mean more money in the cattle markets.
Chris Robinson with TJM Institutional Services, LLC believes there’s some correlation between record highs in the stock market and the cattle market.
“They are long now a chunk and they still have more power to go and more checks to write,” says Robinson.
He believes as 2020 moves forward, there may be more money coming out of the stock market and into physical commodities.
“That could be a real blessing for ranchers,” says Robinson.
It is quite a difference from where cattle prices were in the fall of 2019.
“When we bottomed out there in September, people were very upset,” says Robinson. “We were near 10-year lows. Go look at a chart of live cattle. It was looking pretty dismal.”
He said even though we had a couple of neutral to even a little bearish Cattle on Feed reports, the market shrugged it off.
Watch his analysis with AgDay's Clinton Griffiths here.