Tag Archives: Kyle Bumsted

Kyle Bumsted joins the Fontanelle Final Bell on Thursday to talk all aspects of the cattle market. Despite grains trying to make some gains on the day live cattle and feeder cattle futures continued higher. Bumsted points out how April live cattle have continued to test the $120 mark and have continued to steadily move higher. Calendar spreads in the live cattle though bear watching according to Bumsted with most near long term lows.

Although futures have continued higher the cash market has hit a stale mate as feeders market cattle near steady to last week. This comes as holding cattle for a better market is unprofitable given the recent rally in corn and feedstuffs. Bumsted also highlights why it may not be corn that is directly impacting the feeder cattle futures, but rather the live cattle futures.

Bumsted not only looks at the feeder cattle futures, but also looks at the cash market. Bumsted believes the volume of feeders headed to town will slow down in the coming weeks as both buyers and sellers hold off until closer to grass season. Fly weight cattle continue to be popular at feeder sales due to the multiple marketing avenues available to the buyer and less capitol required.

You can listen to the full conversation with Kyle Bumsted here:

  • Cattle market still has the chance to go higher
  • First full week of trading in ‘21-what’s the feel of the cash
  • Big outside day on Monday
  • How does livestock react to higher grains?
  • Macro markets-how are they playing a role in the trade?
  • Huge cash feeder movement the next couple of weeks?
  • Dollar on the trade
  • Hogs have some money positions moving…how does that effect front month?
  • Cheep meat at the counter

The grain complex wasn’t the only market trying to close on highs of the day. Live cattle and feeder cattle also ended the day strong. Kyle Bumsted, Allendale Inc, joined the Fontanelle Final Bell to discuss why cattle were having a decent run up in the market.

There’s plenty of obstacles for the cattle markets to overcome currently including a cattle on feed report Friday. Bumsted isn’t overly concerned about the cattle on feed report believing the placements could be friendly to the market.

What Bumsted is currently interested in, is the fact the recent gains made in cattle are coming with an increase in open interest for most contracts. That would indicate new positions entering the market rather than shorts taking their money out of the market.

Bumsted is also closely watching how much the next stimulus package could mean for individuals. That could indicate how much disposable income they have ready to try and buy beef following the Christmas season. Looking at local grocery store prices Bumstead believes current beef prices on the shelf are very attractive to the consumer.

You can hear all of Bumsteads comments on the livestock markets here: