For cattle, the higher supplies remain above demand.
Perhaps the bigger U.S. stock estimates are already built into the market, but if not more pressure could be seen next week.
At a minimum, this firm is bearish through the end of August.
A bullish surprise, a bearish stocks number, and a market that will turn to the weather next week.
According to market analyst Rich Nelson, the current rally in the cattle markets is a gift horse for those who still need to hedge cattle for the remainder of the year.
With both the world as well as the U.S. balance sheets expected to grow over the coming months, it will be hard for soybean rallies to be sustained without a major weather issue.
In addition to negative USDA data, the macroeconomic factors have been sitting on the grain markets, too.
The deck is stacked against the cattle market for early-summer and early-fall fat cattle prices.
The favorable South American crop-weather, a shift in demand, and bearish USDA Acreage data helped keep a lid on upward movement.
For 2017, we are not going to get the same drop in production we’ve seen in recent years. It will fall, but nothing like normal.