Feeder cattle are coming into a seasonal timeframe where the market is slowing down. Van Ahn and Company Market Analyst Jim Emter says there’s concern high-end meat demand may drop with rising inflation. Emter says as we get later into 2022, the market should be more favorable. “We do see a more positive outlook as we adjust to seasonals. Generally, April is a seasonal bottoming time for feeders while May is more of the timeframe for live cattle. If we can round out that base between that timeframe, I think we’ll see a more sustained buying interest in the markets. I think the second half of this year is going to be more favorable to the cattle complex both feeders and live.” Emter says inverse markets could create unique opportunities. “When you’re seeing inverse markets, give the market what it wants. As we look at these futures markets drive up, the corn and wheat market in particular, you need to understand when you see that happening with widening basis levels, that’s not usually a welcoming sign.
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