The cattle market took a calmer approach this week, trading with small gains to start the week, but then fading those gains to close out the short week. This week’s cattle activity made the cattle market look tired as it made feeble attempts at testing resistance. The lack of a cash trade, screw worm concerns, weather, and positions squaring ahead of two import cattle reports all added to the mix to give cattle direction.
Cattle started the short week off by posting small gains in both contracts. The cattle markets bounced back after Friday’s losses (on false screwworm rumors) and closed with decent gains. Improving cash trade and higher boxed beef prices supported cattle. This week’s bitterly cold temps are expected to limit cattle movement added support. Positioning ahead of Friday’s COF report will be seen this week.
Small gains continued to be on the ticket for cattle midweek. Live cattle were briefly lower early in the session before getting back on the positive side and then trading in a tight range for the rest of the session to close with gains. Feeder cattle traded on both sides of unchanged early in the session. The market then stayed on the positive side but trimmed gains late in the session to close with small gains. Positioning ahead of Friday’s COF report was seen. Boxed beef prices were higher.
Selling moved into the cattle exchanges on Thursday with pressure tied to profit taking and technical selling as cattle just could not put together a push to test the mid-October gap in the charts. Live cattle managed to close with small losses in the front two months and with small gains in the deferred months. Feeder cattle closed with small gains in the front month Jan (which is tied to the cash feeder cattle index) but with small losses in the deferred months. Cattle opened the session steady to lower but spent most of the session trading on both sides of the fence. Losses were kept in check from what is expected to be a friendly Jan COF report. The report not only will give traders an idea of the number of cattle in feedlots, placements, and marketing, it will also shine a light on how many heifers are in the feedlot. Which will give the market an idea on retention.
Technical resistance for the Feb live cattle market is at $241.35 while $371.15 is resistance for Jan feeder cattle.
The CME cash feeder cattle index was down 27 cents at $369.42.
The Jan COF report was slightly negative cattle as although the On Feed estimate and Marketing estimate were as expected; the Placement estimate was 2% above expectations. For the breakdown between steers and heifers, steers made up 61% of the calves on feed while heifers made up 39%, both down 3% year over year. Estimates for the report are On Feed: 97% (as expected), Placed: 95% (2% above expectations), and Marketing: 102% (as expected).
For the week, February live cattle closed at $234.90 up $2.75. Jan feeder cattle closed at $364.80 up $2.875.
Cattle Weekly Comments January 23
Cattle Weekly Comments January 23
The cattle market took a calmer approach this week, trading with small gains to start the week, but then fading those gains to close out the short week. This week’s cattle activity made the cattle market look tired as it made feeble attempts at testing resistance. The lack of a cash trade, screw worm concerns, weather, and positions squaring ahead of two import cattle reports all added to the mix to give cattle direction.
Cattle started the short week off by posting small gains in both contracts. The cattle markets bounced back after Friday’s losses (on false screwworm rumors) and closed with decent gains. Improving cash trade and higher boxed beef prices supported cattle. This week’s bitterly cold temps are expected to limit cattle movement added support. Positioning ahead of Friday’s COF report will be seen this week.
Small gains continued to be on the ticket for cattle midweek. Live cattle were briefly lower early in the session before getting back on the positive side and then trading in a tight range for the rest of the session to close with gains. Feeder cattle traded on both sides of unchanged early in the session. The market then stayed on the positive side but trimmed gains late in the session to close with small gains. Positioning ahead of Friday’s COF report was seen. Boxed beef prices were higher.
Selling moved into the cattle exchanges on Thursday with pressure tied to profit taking and technical selling as cattle just could not put together a push to test the mid-October gap in the charts. Live cattle managed to close with small losses in the front two months and with small gains in the deferred months. Feeder cattle closed with small gains in the front month Jan (which is tied to the cash feeder cattle index) but with small losses in the deferred months. Cattle opened the session steady to lower but spent most of the session trading on both sides of the fence. Losses were kept in check from what is expected to be a friendly Jan COF report. The report not only will give traders an idea of the number of cattle in feedlots, placements, and marketing, it will also shine a light on how many heifers are in the feedlot. Which will give the market an idea on retention.
Technical resistance for the Feb live cattle market is at $241.35 while $371.15 is resistance for Jan feeder cattle.
The CME cash feeder cattle index was down 27 cents at $369.42.
The Jan COF report was slightly negative cattle as although the On Feed estimate and Marketing estimate were as expected; the Placement estimate was 2% above expectations. For the breakdown between steers and heifers, steers made up 61% of the calves on feed while heifers made up 39%, both down 3% year over year. Estimates for the report are On Feed: 97% (as expected), Placed: 95% (2% above expectations), and Marketing: 102% (as expected).
For the week, February live cattle closed at $234.90 up $2.75. Jan feeder cattle closed at $364.80 up $2.875.