It has been some time since I addressed live cattle and feeders, writes Sue Martin for AGWEEK.
Seasonally, cattle futures tend to rally into the first full week of December. Thus far, this year’s behavior for cattle futures going into December appears to be fully seasonal. The cash market has been rising along with an explosive move in the Choice/Select spread along with an aggressive chain speed.
Packers have shown they are willing to pay up for cattle, even when I hear rumors that meat may be backing up. Traditionally, cattle prices slip from about Dec. 5-8 into Christmas and perhaps into the new year. December cattle closed last week on highs and it appears prices will be higher. The all-time high on a December contract is $115.35/cwt., so higher highs here could push this market in early December to $105/cwt.
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