Cattle started the week posting strong gains but then spent the second half of the week going back a lot of what it gained. It appears that the markets are back to trading headlines. Between the war in Iran and economic concerns, cattle had little time to react to their own fundamental news.
Live cattle opened the week steady to higher while feeder cattle opened steady to lower. It did not take long for cattle to shake off the early pressure and push higher. Early support spilled over from the lower grains. A sharply lower crude oil market teamed up with a stronger Dow Jones to add support as the lower crude oil market should help alleviate some pressure from the sky rocketing energy sector.
Buying continued Tuesday as cattle started the session on the plus side and extended session gains throughout the day. Early selling was tied to a lower grain complex, but cattle held onto its gains even after the grains turned steady to higher. Light support was also due to a better performance in the stock market. Gains were kept in check early by a firm crude oil market. Position squaring ahead of Friday’s COF report was also evident.
Midweek had the cattle contracts going in different directions as live cattle closed with small gains while feeder cattle faded lower. Selling was tied to profit taking and position squaring ahead of Friday’s COF report. Light selling was tied to demand concerns as the high price of crude oil and softer stock market could result in consumers switching to lower priced protein. Live cattle were pressured by the lack of a cash trade. Feeder cattle saw pressure from a stronger corn market.
Cattle posted heavy losses to end the week Thursday. Cattle gapped lower on the opening bell due to pressure from a higher crude oil market and lower stock market. The major indexes are now trading at levels not seen since November 2025. Light selling was tied to rumors that the Fed could be looking at possible interest rate increases in the short term, especially if the economy continues to decline and prices continue to rise from the war. The lack of a cash trade and stronger corn market added pressure. Last week’s beef export sales pace was estimated at a disappointing 3,207 MT, which is the lowest export sales pace reported since Oct 2023. Position squaring ahead of Friday’s COF report was evident. Last week’s cash trade took place between $234 and $236.
The March Cattle of Feed report had cattle on feed at 99.8% vs. the average trade estimate of 99.3%. Placed on feed was 103.7% vs. 100.2% estimated and marketed at 93.2% vs. the estimate of 92.6%. Placements are higher due to Feb cattle sales running 22% above last year.
For the week, April live cattle closed at $234.05 up $3.15. March feeder cattle closed at $357.75 up $8.275.
Cattle Weekly Comments March 20
Cattle Weekly Comments March 20
Cattle started the week posting strong gains but then spent the second half of the week going back a lot of what it gained. It appears that the markets are back to trading headlines. Between the war in Iran and economic concerns, cattle had little time to react to their own fundamental news.
Live cattle opened the week steady to higher while feeder cattle opened steady to lower. It did not take long for cattle to shake off the early pressure and push higher. Early support spilled over from the lower grains. A sharply lower crude oil market teamed up with a stronger Dow Jones to add support as the lower crude oil market should help alleviate some pressure from the sky rocketing energy sector.
Buying continued Tuesday as cattle started the session on the plus side and extended session gains throughout the day. Early selling was tied to a lower grain complex, but cattle held onto its gains even after the grains turned steady to higher. Light support was also due to a better performance in the stock market. Gains were kept in check early by a firm crude oil market. Position squaring ahead of Friday’s COF report was also evident.
Midweek had the cattle contracts going in different directions as live cattle closed with small gains while feeder cattle faded lower. Selling was tied to profit taking and position squaring ahead of Friday’s COF report. Light selling was tied to demand concerns as the high price of crude oil and softer stock market could result in consumers switching to lower priced protein. Live cattle were pressured by the lack of a cash trade. Feeder cattle saw pressure from a stronger corn market.
Cattle posted heavy losses to end the week Thursday. Cattle gapped lower on the opening bell due to pressure from a higher crude oil market and lower stock market. The major indexes are now trading at levels not seen since November 2025. Light selling was tied to rumors that the Fed could be looking at possible interest rate increases in the short term, especially if the economy continues to decline and prices continue to rise from the war. The lack of a cash trade and stronger corn market added pressure. Last week’s beef export sales pace was estimated at a disappointing 3,207 MT, which is the lowest export sales pace reported since Oct 2023. Position squaring ahead of Friday’s COF report was evident. Last week’s cash trade took place between $234 and $236.
The March Cattle of Feed report had cattle on feed at 99.8% vs. the average trade estimate of 99.3%. Placed on feed was 103.7% vs. 100.2% estimated and marketed at 93.2% vs. the estimate of 92.6%. Placements are higher due to Feb cattle sales running 22% above last year.
For the week, April live cattle closed at $234.05 up $3.15. March feeder cattle closed at $357.75 up $8.275.