June Cattle is nearing new contract lows in reaction to a sluggish global economy and disappointing jobs’ numbers . Inflationary controls in China is hurting demand for imports. Higher retail prices for beef are causing consumers to consider cheaper proteins for their diets. All of these factors may cause the live cattle futures market to test new lows and breakdown past the previous low of 114.40 basis June. A broad market sell off targets 110.00.
Seasonally the primary factor to consider for Live Cattle is the upcoming grilling season and the higher demand that usually precedes it. A faltering economic picture and high retail beef prices may push the Cattle Futures market into new lows.
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