Beef prices have hit a new summer low after technical action this week in the market. While positive for live cattle, little-to-no bullish demand factors have boosted the market this summer. Friday’s USDA report was bearish, showing short-term supply greater than estimates. Due to the sink, beef prices officially hit their lowest level since May 20 of this year. If higher prices don’t come soon, speculative long liquidation selling should be expected.
However, the market as a whole remains in an overbought condition and is vulnerable to a corrective break. Meanwhile, significant discounts in lean hog futures may keep sellers on the market sidelines. October hog volatility ticked upward last week partly due to seasonally bearish conditions clashing with an extremely wide cash basis.
With volatility continuing to plague markets, more producers are turning to Livestock Risk Protection (LRP) insurance to cover their herds. This handy guide breaks down everything you need to know, from coverage levels to head limits.
Read more on cattle and hog market prices and analysis here.
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