Cattle producers are navigating another week of sharp swings in the market, prompting some analysts to wonder if prices may be nearing a peak. Randy Martinson, President of Martinson Ag Risk Management, says strong fundamentals remain, but technical volatility is adding uncertainty. “The technicals have gotten to be somewhat volatile and somewhat scary as of late because of these big moves. And it tells us that a possible top is coming into place.” Martinson notes that seasonal supply increases and cross-border cattle imports could put further pressure on prices. “If we open the border to Mexico, not only are we going to see our supplies of cattle starting to increase, but we’re going to see Mexican cattle start to come in across the border as well. That will certainly put some pressure on the market.”
