Analyst: Cattle Market "Overbought" and on "Last Leg"
There was some red during the trading day on Tuesday, but in general the cattle markets have remained strong since Oct. 23.
This impressive climb is somewhat worrisome to Alan Brugler, president of Brugler Marketing & Management, LLC.
“As we go into mid-Novmber or early December, we’re going to see a big increase in the number of market ready cattle that are going to be available,” he said.
Heading into the holiday season with demand picking up, Brugler sees beef stocks swelling slightly, something that’s normal for this time of year. He thinks the key will be the export markets. The rally in the dollar is of particular concern, because prices could head into the red.
“If the dollar continues to strengthen, that hurts our competitive position against Brazil or Argentina or other exporters,” he said.
Hear Brugler’s thoughts on the downside risk heading into 2018 on AgDay above.
