US Perspective—03.11.08
04/11/2008
The Jacobsen Commentary and Market Opinion—03.11.08
Courtesy of www.thejacobsen.com
The The North American story this week has been similar to that of the global market in that it is nearly dead quiet. The trades that are reported have been extremely low and have mainly been from the processor side.
The packers, if they are selling, are reluctant to name any prices and this is an indication that steer prices are due for a downturn. Cows and bulls continue to be under extreme pressure and as one contact said this week, “if you open your mouth you will own it”.
The US stock market has seen modest gains this week as several key Federal studies and moves have provided an interesting music for the market to dance to. The Federal Reserve cut interest rates this week by 0.5%. This was predicted on Tuesday and the market surged and reacted well on Wednesday before losing nearly all of its gains.
The US Gross Domestic Product numbers were released and a 0.3% tightening was less than the 0.5% that was expected. The 0.3% contraction was a result of a 3.1% drop in consuer spending, according to the Wall Street Journal. However, this has led to an increase in buys on the market. In addition, the numbers for sales of durable manufactured goods rose, although a pundit remarked that this is likely to have been as a result of an increase in military contracts.
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