Kyle Bumsted joins the Fontanelle Final Bell on Thursday to talk all aspects of the cattle market. Despite grains trying to make some gains on the day live cattle and feeder cattle futures continued higher. Bumsted points out how April live cattle have continued to test the $120 mark and have continued to steadily move higher. Calendar spreads in the live cattle though bear watching according to Bumsted with most near long term lows.
Although futures have continued higher the cash market has hit a stale mate as feeders market cattle near steady to last week. This comes as holding cattle for a better market is unprofitable given the recent rally in corn and feedstuffs. Bumsted also highlights why it may not be corn that is directly impacting the feeder cattle futures, but rather the live cattle futures.
Bumsted not only looks at the feeder cattle futures, but also looks at the cash market. Bumsted believes the volume of feeders headed to town will slow down in the coming weeks as both buyers and sellers hold off until closer to grass season. Fly weight cattle continue to be popular at feeder sales due to the multiple marketing avenues available to the buyer and less capitol required.
You can listen to the full conversation with Kyle Bumsted here: