Although the week is going to show heavy losses for the cattle markets, the actual trading direction saw cattle trading on the defense to start and end the week, but post gains in the middle of the week. As we have stated, the cattle market looks tired and appeared to be ready to post a retracement. And that is exactly what cattle did. Cattle looked like they were preparing for a round of selling when last week’s friendly COF report and strong cash trade could not help support cattle. Technically Friday’s selloff has taken cattle to major support. Hopefully, that holds once the new month starts.
Cattle started the week posting losses, which was a concern especially with Friday’s friendly COF report. After opening the session mixed, with live cattle steady to higher while feeder cattle opened steady to lower. Everyone was expecting cattle to maybe start sloppy but then recover and trade with gains due to support from Friday’s friendly COF report and strong cash trade. Cash bids were reported between $247 and $248 (up $1 to $3) in the north while dressed traded at $388 (up $6). The trifecta in support should have been due to the lower grains complex. But instead, technical selling took the lead, pulling cattle lower throughout the day.
Light buying moved into the cattle market on Tuesday. Live cattle traded back and forth on both sides of unchanged and closed just above unchanged. Feeder cattle opened lower but soon turned higher and stayed on the positive side to close with small gains. Gains were limited by a quiet cash trade. Boxed beef prices were higher today.
Buying picked up steam midweek, but there still appears to be little confidence to hold long positions. Live cattle traded on the higher side the entire session. Gains were trimmed late in the session, but the market still closed higher. Feeder cattle also spent the session on the higher side and closed with solid gains. Technical buying supported cattle. Cash trade remains quiet this week. Yesterday’s Cold Storage report showed 434.9 million pounds of beef stocks, down 4.4% from last year.
To close out the week Thursday, cattle opened steady to lower but extended selling early in the session. Earley selling spilled over from the higher grain complex. Technical selling added pressure as traders’ square positions ahead of the weekend and month end. The lack of a cash trade added pressure. So far only light cash activity has been seen taking place between $243 and $244. Last week’s beef export sales pace was estimated at 12,903 MT, which is a 6-week low. Cattle look tired and a little more of a retracement is likely as traders try to get to a level that will bring new buyers back into the market (which happened Friday).
For the week, February live cattle closed at $244.00 down $2.575. March feeder cattle closed at $355.425 down $12.60.
For the month, February live cattle closed up $8.15. March feeder cattle closed down $4.85.
Cattle Weekly Comments February 27
Cattle Weekly Comments February 27
Although the week is going to show heavy losses for the cattle markets, the actual trading direction saw cattle trading on the defense to start and end the week, but post gains in the middle of the week. As we have stated, the cattle market looks tired and appeared to be ready to post a retracement. And that is exactly what cattle did. Cattle looked like they were preparing for a round of selling when last week’s friendly COF report and strong cash trade could not help support cattle. Technically Friday’s selloff has taken cattle to major support. Hopefully, that holds once the new month starts.
Cattle started the week posting losses, which was a concern especially with Friday’s friendly COF report. After opening the session mixed, with live cattle steady to higher while feeder cattle opened steady to lower. Everyone was expecting cattle to maybe start sloppy but then recover and trade with gains due to support from Friday’s friendly COF report and strong cash trade. Cash bids were reported between $247 and $248 (up $1 to $3) in the north while dressed traded at $388 (up $6). The trifecta in support should have been due to the lower grains complex. But instead, technical selling took the lead, pulling cattle lower throughout the day.
Light buying moved into the cattle market on Tuesday. Live cattle traded back and forth on both sides of unchanged and closed just above unchanged. Feeder cattle opened lower but soon turned higher and stayed on the positive side to close with small gains. Gains were limited by a quiet cash trade. Boxed beef prices were higher today.
Buying picked up steam midweek, but there still appears to be little confidence to hold long positions. Live cattle traded on the higher side the entire session. Gains were trimmed late in the session, but the market still closed higher. Feeder cattle also spent the session on the higher side and closed with solid gains. Technical buying supported cattle. Cash trade remains quiet this week. Yesterday’s Cold Storage report showed 434.9 million pounds of beef stocks, down 4.4% from last year.
To close out the week Thursday, cattle opened steady to lower but extended selling early in the session. Earley selling spilled over from the higher grain complex. Technical selling added pressure as traders’ square positions ahead of the weekend and month end. The lack of a cash trade added pressure. So far only light cash activity has been seen taking place between $243 and $244. Last week’s beef export sales pace was estimated at 12,903 MT, which is a 6-week low. Cattle look tired and a little more of a retracement is likely as traders try to get to a level that will bring new buyers back into the market (which happened Friday).
For the week, February live cattle closed at $244.00 down $2.575. March feeder cattle closed at $355.425 down $12.60.
For the month, February live cattle closed up $8.15. March feeder cattle closed down $4.85.