Kyle Bumsted, Allendale Inc, joins the Fontanelle Final Bell from a dirt road near Ericson Nebraska. The market discussion centers around livestock. Heat is not only taking it’s toll on the row crops, but it also impacting cattle. This could help to decrease carcass weights. Which have been on the rise since the pandemic caused a backlog of fed cattle. Heat also discourages grilling though. As Bumsted says in the program, “Not many people want to stand in 100+ degree weather and grill a steak.” That creates the question of, where will demand fall going through the rest of summer? Bumsted believes that there will be plenty of meat coming to the market and this may put pressure back on the futures.
Bumsted has also been closely watching spreads and seasonal trends in the livestock markets. His research shows that feeders have a tendency to trend higher though the end of July into August. This happens to parallel when many large video auctions are also occurring.
Grains are not left out of the conversation. In the second half of the Fontanelle Final Bell, Bumsted looks at the technical and weather pattern driving the grain trade.
You can catch the full episode uninterrupted here: