The cattle market has been on a bit of a teeter-totter cycle the past six months or so, with price going up and down. This sideways trade could lead to some explosive price movement down the road, says Naomi Blohm, a senior market advisor with Stewart-Peterson Inc.
“We don’t have the fundamentals right now to dictate if it is going to be a higher breakout or lower breakout,” Blohm says.
She cautions cattle producers to watch out for price break to happen in the third quarter and to keep an eye on the demand situation.
Blohm adds if the August and October Live Cattle Futures slip below $110/cwt. it would like create panic amongst cattle traders. It could possibly give packers an opportunity to wait on prices to fall lower.
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