Livestock and grain market prices were mixed to slightly higher Tuesday after the day off for Martin Luther King Day.
During the past few weeks livestock markets have been climbing and even jumped a little too far, says Todd Horwitz with BubbaTrading.com.
“The key spot here is there are some gaps to fill from when contract rolled over (at the turn of the New Year),” Horwitz adds.
Live cattle have seen a gap with prices at $125/cwt.
“I think that is a much better level overall to get involved in,” Horwitz says.
Feeder cattle trading at $145-$148 are more realistic levels, as well.
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Grain trade was higher on Tuesday after the break and last week's World Agricultural Supply and Demand Estimates report.
Horwitz doesn’t think the grain markets can go much lower. He thinks there is some upside in the market.
“When you see a market that can no longer go down, you know it is time for a possible reversal,” Horwitz says.