Cattle had a little bit of something for everyone this week. Cattle started the week posting limit up gains, but that is where the similarity between live cattle and feeder cattle ended this week. Live cattle spent the rest of the week giving back their gains while feeder cattle posted gains on Tuesday but then faded lower to close out the week. Selling was tied to concerns about the policies that are being talked about in Washington due to trade talks with Brazil and with border issues with Mexico.
Cattle opened the session mixed with live cattle higher while feeder cattle started off on the defense. Early support for the live cattle came from last week’s steady to firm cash trade. Reports that the government shutdown is drawing to a close added support. Feeder cattle opened on the defense due to spill over pressure from a strong corn market. By midsession buying was pretty much encompassing both markets. Light support was due to reports that the administration has asked the DOJ to start investigating packers. Confirmation that the US Mexican border will remain closed added support. Dec live cattle synthetics show that Dec live cattle should be 7.5 cent higher while Nov feeder cattle are showing a 72.5 cent higher.
Tuesday’s session had cattle going in opposite direction with live cattle fading lower while feeder cattle pushed higher. Live cattle were able to open the session higher while feeder cattle gapped higher on the opening bell. Feeder cattle were supported by carry over buying from Monday’s limit up session, which was supported by rumors of another new screw worm case in Mexico. Live cattle faded its gains, spending most of the session in the red. Selling was tied to a stronger grain complex. The lack of a cash trade added to the selling pressure in the live cattle.
Selling took charge midweek as both the live cattle and feeder cattle market slipped lower. Live cattle opened the session steady to higher. Feeder cattle gapped higher in the front month Nov, but the deferred contracts started steady to lower. Cattle continued to fade the opening but managed to find a bottom just after midsession. Early selling was tied to demand and supply concerns. The administration reported that they have almost wrapped up trade talks with Brazil, which has the potential to bring in a significant amount of beef into the US. A stronger grain complex added selling pressure.
The front month Nov feeder cattle bucked the trend, trading with gains throughout the session. Nov expires in 8 days and is tied to cash. Reports of heavier slaughter weights weighed on the live cattle market. This week’s slaughter weight was 2 pounds above last week and 23 pounds above last year.
Heavy selling returned to the cattle market to end the week Thursday. Live cattle closed solidly lower but did not close limit down like the deferred feeder cattle contracts. Feeder cattle fell lower throughout the session with the March and further out contracts closing limit down $9.25. Friday’s session will see expanded limits of $13.75 for feeders and $10.75 for live cattle. Concerns that a trade deal with be signed with Brazil and tariffs will be removed from Brazilian beef pressured cattle. Fund long liquidation added to the losses. Slow cash trade and lower boxed beef prices also pressured the market.
For the week, Dec live cattle closed at $219.15 down $2.20. November feeder cattle closed at $338.675 up $12.275.
Cattle Weekly Comments November 14
Cattle Weekly Comments November 14
Cattle had a little bit of something for everyone this week. Cattle started the week posting limit up gains, but that is where the similarity between live cattle and feeder cattle ended this week. Live cattle spent the rest of the week giving back their gains while feeder cattle posted gains on Tuesday but then faded lower to close out the week. Selling was tied to concerns about the policies that are being talked about in Washington due to trade talks with Brazil and with border issues with Mexico.
Cattle opened the session mixed with live cattle higher while feeder cattle started off on the defense. Early support for the live cattle came from last week’s steady to firm cash trade. Reports that the government shutdown is drawing to a close added support. Feeder cattle opened on the defense due to spill over pressure from a strong corn market. By midsession buying was pretty much encompassing both markets. Light support was due to reports that the administration has asked the DOJ to start investigating packers. Confirmation that the US Mexican border will remain closed added support. Dec live cattle synthetics show that Dec live cattle should be 7.5 cent higher while Nov feeder cattle are showing a 72.5 cent higher.
Tuesday’s session had cattle going in opposite direction with live cattle fading lower while feeder cattle pushed higher. Live cattle were able to open the session higher while feeder cattle gapped higher on the opening bell. Feeder cattle were supported by carry over buying from Monday’s limit up session, which was supported by rumors of another new screw worm case in Mexico. Live cattle faded its gains, spending most of the session in the red. Selling was tied to a stronger grain complex. The lack of a cash trade added to the selling pressure in the live cattle.
Selling took charge midweek as both the live cattle and feeder cattle market slipped lower. Live cattle opened the session steady to higher. Feeder cattle gapped higher in the front month Nov, but the deferred contracts started steady to lower. Cattle continued to fade the opening but managed to find a bottom just after midsession. Early selling was tied to demand and supply concerns. The administration reported that they have almost wrapped up trade talks with Brazil, which has the potential to bring in a significant amount of beef into the US. A stronger grain complex added selling pressure.
The front month Nov feeder cattle bucked the trend, trading with gains throughout the session. Nov expires in 8 days and is tied to cash. Reports of heavier slaughter weights weighed on the live cattle market. This week’s slaughter weight was 2 pounds above last week and 23 pounds above last year.
Heavy selling returned to the cattle market to end the week Thursday. Live cattle closed solidly lower but did not close limit down like the deferred feeder cattle contracts. Feeder cattle fell lower throughout the session with the March and further out contracts closing limit down $9.25. Friday’s session will see expanded limits of $13.75 for feeders and $10.75 for live cattle. Concerns that a trade deal with be signed with Brazil and tariffs will be removed from Brazilian beef pressured cattle. Fund long liquidation added to the losses. Slow cash trade and lower boxed beef prices also pressured the market.
For the week, Dec live cattle closed at $219.15 down $2.20. November feeder cattle closed at $338.675 up $12.275.