Coral,

The Cattle market is like a moss covered stone in a rapid stream. Supply will take years to grow to the level of being a burden because of price risk. The market could tumble at anytime a wipe out an operation.

This will keep the supply levels OK at best. Producers may expand but expand with caution.

Demand will remain good for "quality", but quality is difficult to find. This makes for a two tier market.

So bottom line this is a market to stay out.. I have been in many different postions in this market, broker, cattle feeder, I have handled major accounts like Xcel, Safeway, large cow/calf operators, large feedlots, backgrounders, all involved beef industry. From that experience I can say with conviction the beef industry is one of this Countries greatest industres, and mostly free of any Government intervention.

Trading cattle futures should be traded based on technical indicators ONLY, with a focus on risk management.

Sorry I could not offer more, but my business interest is mostly Internet related.

Salute