US Perspective—16.09.08
16/09/2008
The Jacobsen Commentary and Market Opinion
Courtesy of www.thejacobsen.com
There is not a lot of spectacular activity to report this week. There seem to be the same echoes that have been bouncing around for the last few weeks. That is, the cow market is a bit overvalued at this point and not a lot of buyers are pulling the trigger.
Sources have commented that when the big packers want to lower their asking prices we will see a correction in the price. However, the big packers seem confident in their asking levels and don’t seem to be in a panic to unload any product at what buyers are offering. With that said, if the slaughter numbers remain strong and the demand remains weak the prices will correct themselves soon enough.
Another sentiment echoed from earlier is the direction of the steer market. More than one contact has said they think the market is overvalued and due for a downturn, but the current levels are moving. As for now, the demand seems to be strong enough to maintain current price levels.
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