US Government May Intervene in Cattle Market Amid Bearish Report
The US Cattle Markets are expected to receive a bearish report on August 21st. Analysts believe that if the report is indeed bearish, the US government may announce new plans to make beef cheaper and crush the Cattle Markets. Last month, the government tried to tank the markets by announcing the opening of the Southern Border for cattle imports from Mexico.
Kevin Hassett, Director of the National Economic Council, mentioned that there is a plan in place to lower beef prices, but it has not been disclosed yet. The opening of the Southern Border on August 24th will allow more cattle imports from Mexico, which could further pressure US cattle prices.
The Soybean Oil market is also expected to move higher, with analysts predicting that December'26 Soybean Oil could trade in the 80's. The market has been driven by strong demand and tight supply, with US Soybean Oil stocks down to 0.9mt as of July. Rapeseed production in the EU is expected to drop due to drought conditions.