Fundamentally, as I spoke to some cattle clients over the past few days with the heat dome or the "death dome" approaching much of the Midwest this week, just keeping weights the same will be a victory.
Last week we noted our original $78 per pound expiration target for summer futures would need to be raised up to $80. It was still a bearish price forecast compared with prices at the time was simply was not as bearish as it could be.
With the follow-through selloff in live and feeders today, every producer is bracing for a return to 2015. Technically, neither market is suggesting that. What they are suggesting are selloffs comparable to the one seen in either early January or late January of this year. Why? The market has technically changed since early last June, and even before that.