Cattle posted gains in every session this week with support coming from technical buying and bargain hunting from traders who have been looking for an opportunity to get long cattle at lower prices. Light support came from calmer heads on tariffs and continued friendly fundamentals.
Cattle opened the short week steady to higher and extended session gains right from the start. Support spilled over from a stronger stock market as it seems some of the tariff concerns have faded. A stronger crude oil market and weaker US dollar added support. Tight supplies and decent domestic demand continue to give support. Last week the funds trimmed their long position in live cattle by 24,000 contracts and by 5,000 contracts in the feeder cattle contracts. If they decide to continue to trim positions, fundamentals won’t stand in their way. Boxed beef prices were higher.
Buying continued to give cattle support Tuesday. After opening steady to higher and near the lows of the session cattle found strength to push higher throughout the rest of the session. Technical buying helped cattle push higher as live cattle make a run to test resistance while feeder cattle try to close a few gaps that were created when the market sold off. Most months were successful in closing the middle gap and now the only gap left to fill in feeders is the one created the day the tariffs were announced. And if that one gets filled, feeders just might make a run to test their previous high. The front month live cattle gains were kept in check by the lack of a cash trade. Position squaring ahead of Thursday’s COF report was also evident.
To close out the short week cattle opened Wednesday’s session steady to higher and extended session gains early. Early support came from technical buying as traders who have been sitting on the sidelines have started to emerge as buyers. Traders managed to close the middle gap recently created since cattle gapped lower after the tariff announcement. At this point, it appears that traders are on track to try and close the first gap, which would almost erase the entire setback seen over the past two weeks. Position squaring ahead of Thursday’s COF report was also evident.
The April COF report was neutral, to maybe a bit negative. Most estimates were in line with estimates, except for placements which were 1% above expectations. The other interesting number came in the breakdown of cattle in feedlots. Steers make up 62% of the cattle in feedlots (down slightly from last year) while heifers account for 38% of the number (down 4% from last year). Could this be the start of herd expansion? Estimates for the April COF report were On Feed: 98% (as expected), Placed: 105% (1% above expectations), and Marketed: 101% (as expected).
For the week, April live cattle were at $209.825 up $7.35. April feeder cattle expired at $293.35 up $8.175. May feeder cattle closed at $286.85 up $8.15.
Cattle Weekly Comments April 17
Cattle Weekly Comments April 17
Cattle posted gains in every session this week with support coming from technical buying and bargain hunting from traders who have been looking for an opportunity to get long cattle at lower prices. Light support came from calmer heads on tariffs and continued friendly fundamentals.
Cattle opened the short week steady to higher and extended session gains right from the start. Support spilled over from a stronger stock market as it seems some of the tariff concerns have faded. A stronger crude oil market and weaker US dollar added support. Tight supplies and decent domestic demand continue to give support. Last week the funds trimmed their long position in live cattle by 24,000 contracts and by 5,000 contracts in the feeder cattle contracts. If they decide to continue to trim positions, fundamentals won’t stand in their way. Boxed beef prices were higher.
Buying continued to give cattle support Tuesday. After opening steady to higher and near the lows of the session cattle found strength to push higher throughout the rest of the session. Technical buying helped cattle push higher as live cattle make a run to test resistance while feeder cattle try to close a few gaps that were created when the market sold off. Most months were successful in closing the middle gap and now the only gap left to fill in feeders is the one created the day the tariffs were announced. And if that one gets filled, feeders just might make a run to test their previous high. The front month live cattle gains were kept in check by the lack of a cash trade. Position squaring ahead of Thursday’s COF report was also evident.
To close out the short week cattle opened Wednesday’s session steady to higher and extended session gains early. Early support came from technical buying as traders who have been sitting on the sidelines have started to emerge as buyers. Traders managed to close the middle gap recently created since cattle gapped lower after the tariff announcement. At this point, it appears that traders are on track to try and close the first gap, which would almost erase the entire setback seen over the past two weeks. Position squaring ahead of Thursday’s COF report was also evident.
The April COF report was neutral, to maybe a bit negative. Most estimates were in line with estimates, except for placements which were 1% above expectations. The other interesting number came in the breakdown of cattle in feedlots. Steers make up 62% of the cattle in feedlots (down slightly from last year) while heifers account for 38% of the number (down 4% from last year). Could this be the start of herd expansion? Estimates for the April COF report were On Feed: 98% (as expected), Placed: 105% (1% above expectations), and Marketed: 101% (as expected).
For the week, April live cattle were at $209.825 up $7.35. April feeder cattle expired at $293.35 up $8.175. May feeder cattle closed at $286.85 up $8.15.