Even without the ice having been too severe, cattle remain firmer.
The current chart pattern appears to be forming a "morning star" pattern on the candlestick. When you view the chart with this blog, notice the gap down from Wednesday to Thursday's trade of last week. Then, note the gap up this morning from that leaves the previous two trading days by themselves. A trade above $119.70 February will lead me to anticipate further upside potential, but I am unsure by how much.
At this time, I see nothing to do. With previous recommendations urging producers to have a price floor under significant amounts of inventory, the next step will be to see how much higher traders will push prices.
Of interest this morning was that all commodities are higher with an exceptionally weak US dollar. When I began seeing this, it brought back memories of the time frame between 2003 and 2009 when commodities and currencies would move simultaneous. While this is just starting to be noticed, I perceive the faster one gyrates toward this fashion of trading, the more informed decisions one will make.
For the time being, I recommend allowing some time to go by to see what patterns are built from the most recent recognized.
Feeder cattle are firmer. It has been a while since the feeders have bucked a negative seasonal tendency. However, that is what is transpiring at this time.
I anticipate some time to go by in the current price range between $128.00 and $123.00 March.
With significant inventory already having been recommended priced, I'd like to see just how strong the legs of this market is. That may suggest one has to sit through some sideways-to-lower trading. There remains time for further winter weather, and there is always the potential for demand to increase.