Cattle Markets Tumble Amid Government Pressure, Soybean Oil Sees Bright Future
The cattle markets experienced significant fluctuations in recent days, with prices rising and falling sharply. The October'26 Feeders traded above Bill Allen's target level of 330, causing him to close his short futures and options positions in the Fats and Feeders. However, on July 23rd, the Feeder Cattle Index continued to break down, leading Allen to create bearish trade examples for the market.
Allen remains cautious about the cattle markets, warning that outside pressure could tank prices further. He notes that the US government's efforts to lower cattle prices are likely contributing to the downward trend. Additionally, the Cattle on Feed Report is scheduled for release on July 25th, which may provide further insight into the market's trajectory.
On a more positive note, Allen is bullish on the Soybean Oil market, predicting that it will trade higher in the near-term and long-term. He believes that several factors are converging to drive up prices, including strong demand for biofuels and tight global vegetable oil stocks.