Cattle Contract Reacts to Border Reopening

A DTN/Progressive Farmer article

The two loudest messages the cattle complex gave from Monday's trade were that traders are well-aware packers possess the lion's share of the market's leverage -- and no one is exactly sure what to expect from the border reopening to Mexican cattle imports.

Initially, Monday's market opened higher. But as traders analyzed where the market sits and what's expected next, a bearish gloom appeared across the market within minutes. This drove contracts to close noticeably lower by Monday's end.

Unfortunately, as I sit here today, I hate that I can't consult a crystal ball to tell you exactly what's going to unfold with the U.S.-Mexico border in the weeks to come; at this point, we have to sit and wait. It's unknown exactly how many cattle will come across the border daily; what weight they'll be; or where they'll immediately find themselves in the supply chain. However, I promise as the news develops, DTN will keep you posted.

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