A new year, a new market
"Year in, year out 19 out of 20 year seasonals. Grain prices peak early January and decline into February." The grains may be on the decline but recently cattle prices have ventured in a different direction. Eugene Graner with Heartland Investor Services says during the worst times of 2008 and 2009 the live cattle market consistently held a $80 mark.
He says now we are trying to find the best side of the market with prices at a hedgeable place.
"We have to realize first we have to walk before we can run. Is the cattle market in a raging bull market at this time? No. Until we see unemployment stop declining and see it increase, I think we expect the cattle market to be in a strong sideways market with upside potential north of $90 in the spring and early summer contracts, but are we a runaway bull market? No." Graner says the $90 level for live cattle futures is a hedgeable opportunity because of lower feed costs and because many calves were bought at low prices. Graner says he expects the feeder cattle market to start to soften from present levels being reflected on the board.
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