Sometimes you just know that a market feels toppy but you maybe are a little scared to pull the trigger and start locking in some profits. Then without notice the market violently trades against you in a short period of time. How would that make you feel? Well if you are unsure ask your neighboring feed yard this week. With live prices moving down $4 live after a week of reports saying that we will experience record high prices this feels like a big ouch.
It does feel like we could all see this correction coming considering the charts and the sudden rise the market has experienced. As we found in the housing bubble in the US, what goes up must come down. The question is how many producers took advantage of the market rise over the past month to protect some of their capital for the summer market.
As Anne and I have discussed before you can deal with lower and higher prices but the volatility of those price swings are what can make you feel sick to your stomach at times.
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