Live cattle started the week and ended the week Thursday posting gains, but lost ground in the middle of the week. Feeder cattle on the other hand started the week higher, faded lower on Tuesday and then pushed higher the remaining two sessions of the week. This week’s lower cash trade combined with technical selling to put pressure on cattle. The retracement has brought cattle down to major support, which for the time being is holding.
Cattle opened the week with modest gains and traded in a back-and-forth fashion in the first half of the session but rallied to post solid gains late. Technial buying was the main driver as cattle bounced off support lines. Bargain hunter buying was also evident as traders have been looking for a break to establish long positions and last week’s sell off gave traders the confidence to come off the fence. This could be a bear trap as the recent retracement was not deep enough to clean up an overbought market condition. But on the bullish side, the situation that has pushed cattle to all-time highs, tight supplies, and strong demand, continues to be issues.
Selling pressure hit both cattle contracts Tuesday. After cattle opened the session steady cattle tried to rally early but then faded to trade with heavy losses by midsession. Technical selling combined with profit taking to push cattle lower as it appears that maybe yesterday’s recovery was just a bear trap to entice new traders to enter the market on the long side. Light selling was also tied to lower cash activity, in both live and feeder cattle. A large increase in beef production added to the pressure. 2023 beef production was estimated at 27.034 billion pounds unchanged from last month. 2024 beef production was estimated at 27.055 billion pounds vs 27.052 billion last month. 2025 beef production was estimated at 26.632 billion pounds vs 25.857 billion pounds last month and increase of 775 million pounds. The increase was mainly due to USDA accounting for the re-opening of the Mexican US border.
Cattle went in different direction midweek with live cattle losing ground while feeder cattle gained ground. Cattle opened the session steady to higher but spent most of the session waffling around posting small gains to small losses. Live cattle traded in a tight $1 to $1.50 trading range while feeder cattle traded in a more robust $1.75 to $2.35 trading range. Light cash activity was reported taking place between $202 and $203.
Gains returned to the cattle contracts to close out the week Thursday. Cattle opened the session steady then proceeded to rally throughout the first half of the session but then leveled off and coasted into the close. Live cattle gains were kept in check by this week’s lower cash activity, which is being reported taking place at levels $2 to $3 below last week. Feeder cattle were supported by tight supplies and expectations that if tariffs get placed on Canada or Mexico, supplies of feedlot calves will tighten even more. Last week’s export sales pace was estimated at a disappointing 13,098 MT.
By the close, Feb live cattle were at $197.75 down $3.025, while March feeder cattle were at $266.35 up $1.45.
Cattle Weekly Comments February 14
Cattle Weekly Comments February 14
Live cattle started the week and ended the week Thursday posting gains, but lost ground in the middle of the week. Feeder cattle on the other hand started the week higher, faded lower on Tuesday and then pushed higher the remaining two sessions of the week. This week’s lower cash trade combined with technical selling to put pressure on cattle. The retracement has brought cattle down to major support, which for the time being is holding.
Cattle opened the week with modest gains and traded in a back-and-forth fashion in the first half of the session but rallied to post solid gains late. Technial buying was the main driver as cattle bounced off support lines. Bargain hunter buying was also evident as traders have been looking for a break to establish long positions and last week’s sell off gave traders the confidence to come off the fence. This could be a bear trap as the recent retracement was not deep enough to clean up an overbought market condition. But on the bullish side, the situation that has pushed cattle to all-time highs, tight supplies, and strong demand, continues to be issues.
Selling pressure hit both cattle contracts Tuesday. After cattle opened the session steady cattle tried to rally early but then faded to trade with heavy losses by midsession. Technical selling combined with profit taking to push cattle lower as it appears that maybe yesterday’s recovery was just a bear trap to entice new traders to enter the market on the long side. Light selling was also tied to lower cash activity, in both live and feeder cattle. A large increase in beef production added to the pressure. 2023 beef production was estimated at 27.034 billion pounds unchanged from last month. 2024 beef production was estimated at 27.055 billion pounds vs 27.052 billion last month. 2025 beef production was estimated at 26.632 billion pounds vs 25.857 billion pounds last month and increase of 775 million pounds. The increase was mainly due to USDA accounting for the re-opening of the Mexican US border.
Cattle went in different direction midweek with live cattle losing ground while feeder cattle gained ground. Cattle opened the session steady to higher but spent most of the session waffling around posting small gains to small losses. Live cattle traded in a tight $1 to $1.50 trading range while feeder cattle traded in a more robust $1.75 to $2.35 trading range. Light cash activity was reported taking place between $202 and $203.
Gains returned to the cattle contracts to close out the week Thursday. Cattle opened the session steady then proceeded to rally throughout the first half of the session but then leveled off and coasted into the close. Live cattle gains were kept in check by this week’s lower cash activity, which is being reported taking place at levels $2 to $3 below last week. Feeder cattle were supported by tight supplies and expectations that if tariffs get placed on Canada or Mexico, supplies of feedlot calves will tighten even more. Last week’s export sales pace was estimated at a disappointing 13,098 MT.
By the close, Feb live cattle were at $197.75 down $3.025, while March feeder cattle were at $266.35 up $1.45.