After a rally, cattle prices face a turning point.
Markets look to trade talks next week.
Traders have been impressed with packer interest for fat cattle for now three weeks.
The fact is, today’s confirmed sale to China combined with the 1.1-mmt sale announced earlier in the week is not near the hyped 5 to 10 mmt that the trade has been talking about.
Weather is viewed bearish, as it is giving producers an opportunity to catch up on harvest.
Even with China’s swine fever disease, Allendale Inc. does not expect the U.S. to send any pork to China with the heavy tariff issues.
Today's Cattle on Feed report lightens the potential supply we were fearing for the coming spring/summer. There should be some higher trade on Monday.
The trade anticipates a drastic improvement to harvest pace on Monday, which likely helped today's slide. Attention will also likely turn back to the weather forecast as it looks on Sunday night.
China’s Ministry of Agriculture reported foot-and-mouth disease in a herd of cattle that was transported from the Gansu province to the Xinjiang region.
How these trade negations go will have a big impact on U.S. prices.