Didn’t we know that it would be something that has nothing to do with cattle that would trip this runaway market.
Check it out:
Compared to last week, feeder steers and heifers ended the week mostly steady after opening the trading session steady to 4.00 higher. Stocker cattle and calves sold firm to 5.00 higher with renewed grazing interests after recent rains in the central portions of the US.
Russia’s midweek decision to ban all food imports from the United States, stemming from the sanctions imposed over the crisis in the Ukraine, sent CME cattle futures limit-down on Thursday and Friday. Nevermind that Russia has purchased little or no beef from the United States since 2012 and they rank as our 23rd best food customer. Some pressure could be lent from the fact that they will be importing less competing proteins, but more likely the situation offered a good excuse for speculators and trending investors to sell-off a top-heavy commodity. The extent of the blow has not yet been felt in the cash feeder market with most sales taking place early in the week and direct trading shut off late in the week.