The cattle market hit new all-time contract highs this week, but analysts are watching closely for signs of a potential top. Martinson Ag Risk Management President Randy Martinson says the rally has been driven by tight supplies, but technical indicators are flashing caution. “The fundamentals continue to be friendly for the cattle market and they’re going to continue to be friendly because of the lack of supply that is helping to push this market,” said Martinson. “At some point, though, these technicals are turning a little bit negative or at least they’re starting to show a little more volatility, which is the sign of a topping of a market,” Martinson says volatility and seasonal trends may prompt a market shift. “Now this has been a bull run that’s been running since last September. So it’s almost a year old. At some point, the funds are going to start looking at taking their money off the table.”
