Since this column is being written before the release of USDA’s October supply and demand report, I will write about a market that I have not addressed in some time.
In August, cattle futures hit a major price projection and did so on all contracts through April 2011. Technically, with the psychological resistance of $100, cattle futures have seemed unable to press through to the topside.
There were two major cattle traders said to be short this market session. Since mid-September, one was said to have rolled his shorts via spreading to the April contract.
The other remained short in the October up-front contract. This didn’t seem plausible to the average Joe, but sometimes, these guys carry a lot of power, and making deliveries is second nature to them.
To read the entire article, link here.