The focus is on the December and February fat cattle.  Currently, they will be the most expensive inventory ever placed to date.

In my opinion, current optimism met headlong with future pessimism this week as cash remains stout, even though lower, and futures down sharply.

Price erosion continues, with basis remaining wide.

So far this week, corn has rallied sharply, diesel fuel rallied to within $.16 of contract high, and interest rates rose sharply.

If the top has been made, these are the downside projections to anticipate.

In my opinion, the first half of this year's higher trading is no Aesop's fable of "The boy who cried Wolf".

Cattle feeders are laden with working capital to manage, whether personal or borrowed.

The six year and two month long bull market in fat cattle is believed complete.

The positive basis continues to widen.  The carry charge is widely inverted.  Both reflect producers having to assume more of the risk of potential adverse price fluctuation.

Capital outlay hit a new high this week as historical prices were paid in multiple weight categories. This widened the starting feeder to finished fat spread by over $20.00 from June 16 to June 26.