Now that April cattle contracts are off the board, cattle producers are turning their attention to June.
“June’s caught fire a little bit,” said Chip Nellinger of Blue Reef Agri-Marketing. “The Cattle on Feed Reports for six or seven months have illustrated we’ve got bigger supplies coming—the market knows this. It’s what’s held us back a little bit.”
Boxed beef has seen a rally of $10 in the last few weeks and the cash market is showing signs of strength.
“Nobody knows how that’s going to play out and it could lead to some really volatile trade,” he told AgDay host Clinton Griffiths.
Hear what Nellinger says is the wildcard and how the dry weather in the Plains could impact the big picture on AgDay above.