When you're hot you're hot. Beef and pork futures are on an incredible roll.
And while oscillators indicate overbought conditions all over the place, it
doesn't seem to mean a thing. Deferred premiums just keep getting bigger,
apparently suggesting that something really major (e.g., Chinese demand) is
waiting in the late year weeds that will send cash market screaming higher.
Look for cattle contracts to open moderately higher, supported by both
spillover buying and improvement beef business. On the other hand, we think
pork futures will start out more on a mixed basis with some of the ongoing
buying interest countered by profit taking in the face of sharply lower carcass
value.
And while oscillators indicate overbought conditions all over the place, it
doesn't seem to mean a thing. Deferred premiums just keep getting bigger,
apparently suggesting that something really major (e.g., Chinese demand) is
waiting in the late year weeds that will send cash market screaming higher.
Look for cattle contracts to open moderately higher, supported by both
spillover buying and improvement beef business. On the other hand, we think
pork futures will start out more on a mixed basis with some of the ongoing
buying interest countered by profit taking in the face of sharply lower carcass
value.
Comment