Cattle Commentary: Cattle futures shocked the world (joking) and surged to new contract highs today, shortly after some emotionally based analysts were calling for a technical collapse Friday. Though we were suggesting buying the dip on Friday and Monday morning, we did not participate in the full rally today as we were working with clients to reduce risk. For those thinking the market has gotten too far ahead of itself and wanting to look at the short side, consider the April contract.. Some analysts are suggesting that the start of the Goldman roll was the reason for today’s rally, I would say that they don’t fully understand how the roll works. It is actually the opposite, sell front month and buy the next one out. There hasn’t been much of any cash trade to speak of this week, offers are resting at 125. Tomorrow’s Fed Cattle Exchange has 571 head offered.
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