The cattle market may be showing signs of peaking after months of record strength. Martinson Ag Risk Management President Randy Martinson says key fundamentals that supported the rally are starting to shift. “The three things that have really kept the cattle market going are tight supplies, strong cash trade, strong demand, and then futures discount to cash. All of a sudden, cash took a little drop this week, and we’re seeing about a $2 lower cash trade. We’re seeing supplies seasonally start to increase once you get to September, so two of our three issues that have been supporting the market are somewhat getting taken care of or seeing a little bit of a change.” While no one is ready to officially call a top, signs are building that cattle futures could be at a turning point. “We’re seeing volatility increase dramatically in the cattle market. So I wouldn’t be surprised to see the short-term top come into play.”
