Cattle continued to see strong grains this week with strength coming from a strong cash trade, tight supplies, and forecasts for cold temps, which will slow cattle movement and decrease feedlot performance. This week’s gains were enough to push live cattle to new highs in the deferred months while feeder cattle traded to 9-month highs.
Cattle started the short session posting small gains. After opening the session higher cattle slipped to trade in a lack luster fashion for most of the session. Early support was due to last week’s strong cash trade as well as from expectations for increased demand after the first of the year. Last week’s cash activity took place between $196 and $197 in the north, $1 to $2 higher than the previous week. Gains were trimmed late in the session from profit taking and position squaring as traders even up positions.
December live cattle expired posting small losses as it stays in line with current cash bids. The rest of the months closed with gains. Feeder cattle closed with triple digit gains across the board. Cattle opened the last session of 2024 with small gains and never really looked back but instead pushed forward to end the day with solid gains. No cash trade has developed so far this week, but traders are expecting packers to get more aggressive after the New Year holiday. Technical buying was the main driver as it still appears that cattle want to try and test the upper level of this year’s trading range. Jan Feeder cattle are on track to test the gap that was created back on March 22. The top of the gap sits at $265.325 while the bottom of the gap is at $264.025 and Tuesday’s close was at $263.30. Strong demand, tight supplies and no sign of herd expansion continues to give cattle support.
Traders returned to the cattle pits after the New Year break willing to buy as both live cattle and feeder cattle contracts shot sharply higher Thursday. After opening the session steady, cattle rallied to post solid gains. Early support was due to expectations that packers will have to come to town offering good money to secure product for the weekend. The lack of news on when the border with Mexico will open added support. Technical buying was also evident. Jan feeder cattle managed to break through their gap that was created on March 22. The next gap that could slow feeder cattle down is between $270.00 and $270.775. From there it’s the old contract high of $272.30, which was set on Feb 2, 2024. Technically cattle are not showing signs of slowing down.
For the week, Feb live cattle were at $194.05 up $3.40. Jan feeder cattle were at $264.825 up $3.45.
For the month, Dec live cattle were up $5.875 while Feb live cattle were up $2.975. Jan feeder cattle were up $3.55.
For the year, Dec live cattle were up $20.175 while Feb live cattle were up $23.10. Jan feeder cattle were up $40.725.
Cattle Weekly Comments January 3
Cattle Weekly Comments January 3
Cattle continued to see strong grains this week with strength coming from a strong cash trade, tight supplies, and forecasts for cold temps, which will slow cattle movement and decrease feedlot performance. This week’s gains were enough to push live cattle to new highs in the deferred months while feeder cattle traded to 9-month highs.
Cattle started the short session posting small gains. After opening the session higher cattle slipped to trade in a lack luster fashion for most of the session. Early support was due to last week’s strong cash trade as well as from expectations for increased demand after the first of the year. Last week’s cash activity took place between $196 and $197 in the north, $1 to $2 higher than the previous week. Gains were trimmed late in the session from profit taking and position squaring as traders even up positions.
December live cattle expired posting small losses as it stays in line with current cash bids. The rest of the months closed with gains. Feeder cattle closed with triple digit gains across the board. Cattle opened the last session of 2024 with small gains and never really looked back but instead pushed forward to end the day with solid gains. No cash trade has developed so far this week, but traders are expecting packers to get more aggressive after the New Year holiday. Technical buying was the main driver as it still appears that cattle want to try and test the upper level of this year’s trading range. Jan Feeder cattle are on track to test the gap that was created back on March 22. The top of the gap sits at $265.325 while the bottom of the gap is at $264.025 and Tuesday’s close was at $263.30. Strong demand, tight supplies and no sign of herd expansion continues to give cattle support.
Traders returned to the cattle pits after the New Year break willing to buy as both live cattle and feeder cattle contracts shot sharply higher Thursday. After opening the session steady, cattle rallied to post solid gains. Early support was due to expectations that packers will have to come to town offering good money to secure product for the weekend. The lack of news on when the border with Mexico will open added support. Technical buying was also evident. Jan feeder cattle managed to break through their gap that was created on March 22. The next gap that could slow feeder cattle down is between $270.00 and $270.775. From there it’s the old contract high of $272.30, which was set on Feb 2, 2024. Technically cattle are not showing signs of slowing down.
For the week, Feb live cattle were at $194.05 up $3.40. Jan feeder cattle were at $264.825 up $3.45.
For the month, Dec live cattle were up $5.875 while Feb live cattle were up $2.975. Jan feeder cattle were up $3.55.
For the year, Dec live cattle were up $20.175 while Feb live cattle were up $23.10. Jan feeder cattle were up $40.725.