At 10:24 Oct LC are 75 lower at 117.75, Dec LC 100 lower at 117.97, while October Feeders are trading 102 lower at 136.45. 132.48 was the latest CME
Feeder Index. Expect to see 132.33 down 15 tonight.
Asking prices for Fed Cattle are 118-119 with no solid bids. Last week’s showlist have a lot of cattle carried into this week. Market feels like 116 this week.
Futures are sharply lower for mainly two reasons that being sharply lower outside macro markets and last week’s weaker cash fed fundamentals. We came
into this week aggressively short Dec LC at an average price of 119.65. We elected to take some risk off the table for spec accounts as we covered half
our shorts at 117.87. We have resting OPEN orders to exit the other half below 117.00