Live Cattle closed Monday down 45-cents in the February contract, down 30-cents in the April contract, but up 40-cents in the summer June contract. Limit down trading was seen in many of the feeder contracts at one point Monday, but they were not able to hold that $3 limit lower bid and the feeders did not close as bad as they could have. Some chart technicians would suggest that is an encouraging sign. Looking on the cash cattle side of trade even though last week's sales were $3 lower from the previous week at $92, actual volume traded was short by 50,000 to 100,000 head. Showlists will be higher this week with those extra numbers. But it may not be as bad as you would imagine. Beef packers started out the week at 129,000 head compared with 112,000 head last Monday. Packers running a big kill may be eager to replenish supplies later this week. While we feel CME futures, except summer contracts, are undervalued we will continue to hold from buying until the market is ready for it. We are currently lightly hedged and would not add any at these prices.
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