Cattle put in another strong week with both live cattle and feeder cattle trading to new all time contract highs. The broken record continues as strong demand, tight supplies and cash’s premium to futures continues to be the major underlining factors supporting cattle. It does not appear that the train will stop this month as traders are expecting USDA to release two friendly cattle reports over the next week. Jan’s Cattle on Feed report and the Annual Cattle Inventory report were both expected to be friendly, which should help support cattle through Jan. But then it might be wise to have a floor under anything getting ready to market for the next 6 months.
The long weekend was not friendly cattle as both the live cattle and feeder cattle contracts opened Tuesday’s session on the defense. The front month Feb live cattle and Jan feeder cattle contracts are being influenced by cash while supply and demand impacted the deferred months. Cash offers in the country continue to be strong as tight supplies and strong demand keep support under the market. Cattle opened the session steady to higher but faded its gains due to pressure from a sharply higher grain complex. Position squaring ahead of Friday’s Jan COF report was evident as well as from position squaring ahead of the Jan 31 Cattle Inventory report.
Buying returned to the cattle market midweek as both live cattle and feeder cattle traded to another new all-time contract high with live cattle breaking above $200 for the first time in history. Strong cash activity with bids $1 to $2 above last week added support. Position squaring ahead of Friday’s COF report and next week’s Cattle Inventory report added support. Both are expected to be friendly cattle. The lack of news on the time frame for the border opening added support.
Buying continued to be the main focus on Thursday with both contracts once again posting modest gains. Early support spilled over from Wednesday’s strong performance as well as from technical buying as both live cattle and feeder cattle push to another round of new contract high. Tight supplies, strong demand, and strong cash bids continue to support cattle. Light support was due to position squaring ahead of Friday Jan COF report. Thursday’s cash feeder cattle index dropped 74 cents to $278.18.
Friday’s COF report was friendly cattle as not only was the on feed estimate less than expected, placements were sharply below expectations. Estimates are On Feed: 99% (1% less than expected), Placed: 97% (4% less than expected), and Marketing: 101% (as expected). Of the cattle placed in feedlot, steers accounted for 61% of the total while heifers accounted for 39%, 3% below last year.
For the week, Feb live cattle were at $204.775 up $8.025. Jan feeder cattle were at $278.70 up $5.20.
Cattle Weekly Comments January 24
Cattle Weekly Comments January 24
Cattle put in another strong week with both live cattle and feeder cattle trading to new all time contract highs. The broken record continues as strong demand, tight supplies and cash’s premium to futures continues to be the major underlining factors supporting cattle. It does not appear that the train will stop this month as traders are expecting USDA to release two friendly cattle reports over the next week. Jan’s Cattle on Feed report and the Annual Cattle Inventory report were both expected to be friendly, which should help support cattle through Jan. But then it might be wise to have a floor under anything getting ready to market for the next 6 months.
The long weekend was not friendly cattle as both the live cattle and feeder cattle contracts opened Tuesday’s session on the defense. The front month Feb live cattle and Jan feeder cattle contracts are being influenced by cash while supply and demand impacted the deferred months. Cash offers in the country continue to be strong as tight supplies and strong demand keep support under the market. Cattle opened the session steady to higher but faded its gains due to pressure from a sharply higher grain complex. Position squaring ahead of Friday’s Jan COF report was evident as well as from position squaring ahead of the Jan 31 Cattle Inventory report.
Buying returned to the cattle market midweek as both live cattle and feeder cattle traded to another new all-time contract high with live cattle breaking above $200 for the first time in history. Strong cash activity with bids $1 to $2 above last week added support. Position squaring ahead of Friday’s COF report and next week’s Cattle Inventory report added support. Both are expected to be friendly cattle. The lack of news on the time frame for the border opening added support.
Buying continued to be the main focus on Thursday with both contracts once again posting modest gains. Early support spilled over from Wednesday’s strong performance as well as from technical buying as both live cattle and feeder cattle push to another round of new contract high. Tight supplies, strong demand, and strong cash bids continue to support cattle. Light support was due to position squaring ahead of Friday Jan COF report. Thursday’s cash feeder cattle index dropped 74 cents to $278.18.
Friday’s COF report was friendly cattle as not only was the on feed estimate less than expected, placements were sharply below expectations. Estimates are On Feed: 99% (1% less than expected), Placed: 97% (4% less than expected), and Marketing: 101% (as expected). Of the cattle placed in feedlot, steers accounted for 61% of the total while heifers accounted for 39%, 3% below last year.
For the week, Feb live cattle were at $204.775 up $8.025. Jan feeder cattle were at $278.70 up $5.20.