Live cattle put in a firmer performance this week, posting gains to start and end the week but struggled in the middle of the week. Feeder cattle posted gains in three of the four sessions for the week ending Thursday. Crude oil, the Dow, and supplies continue to be the main driver. Cattle are showing signs that they are trying to make a technical run to test recent highs, but outside markets continue to get in the way.
Cattle started the week posting gains after opening the week mixed with live cattle starting mixed while feeder cattle were higher on the opening. Cattle were expected to open the session lower due to Friday disappointing COF report, but that changed once crude oil sold off and extended session losses and the Dow Jones rallied higher. The front month March feeder cattle are set to expire on March 26 and is tied to cash. It appears that cattle are still getting most of their direction from outside sources that drive consumer spending.
Live cattle turned to trade with small changes on Tuesday while feeder cattle posted strong gains. Cattle opened the session mixed in both contracts with the front month opening with gains while the deferred months were lower. Early pressure was due to a higher crude oil contract as well as from a lower start to the Dow Jones. But cattle were able to brush off the early selling pressure and turn higher around midsession with support coming from a stronger Dow Jones and thoughts of improving economic outlook for the US. The lack of a cash trade pressured the live cattle.
Seling pressure continued to drive the cattle midweek, with both contracts slipping lower. Cattle opened the session mixed with live cattle lower while feeder cattle started the session mixed. It did not take cattle long to brush off the early pressure and pushed higher with support coming from a lower crude oil market and higher stock market. Gains were short lived though as cattle turned lower around midsession and continued to trade sloppy for the rest of the session. The lack of a cash trade pressured live cattle. A stronger corn market added selling pressure to the feeder cattle. Tuesday’s APHIS report showed 33 active screw worm cases in Mexico.
To close out the week, cattle pushed higher, bucking the idea that cattle have been seeing direction from crude and the Dow. Live cattle opened lower, spent much of the session in a tight range around unchanged, then moved higher at the end of the session to close with decent gains. Feeder cattle opened lower but slowly got back on the positive side and closed with solid gains. Cattle were able to shake off pressure from the losses in the stock market as the Dow was down over 450 points. Cash trade continues to be light this week. The recent wildfires in NE have burned more than 820,000 acres and left over 35,000 cattle displaced.
For the week, April live cattle closed at $238.710 up $4.65. March feeder cattle went off the board at $363.525 up $5.775 while April feeder cattle closed at $361.90 up $10.725.
Cattle Weekly Comments March 27
Cattle Weekly Comments March 27
Live cattle put in a firmer performance this week, posting gains to start and end the week but struggled in the middle of the week. Feeder cattle posted gains in three of the four sessions for the week ending Thursday. Crude oil, the Dow, and supplies continue to be the main driver. Cattle are showing signs that they are trying to make a technical run to test recent highs, but outside markets continue to get in the way.
Cattle started the week posting gains after opening the week mixed with live cattle starting mixed while feeder cattle were higher on the opening. Cattle were expected to open the session lower due to Friday disappointing COF report, but that changed once crude oil sold off and extended session losses and the Dow Jones rallied higher. The front month March feeder cattle are set to expire on March 26 and is tied to cash. It appears that cattle are still getting most of their direction from outside sources that drive consumer spending.
Live cattle turned to trade with small changes on Tuesday while feeder cattle posted strong gains. Cattle opened the session mixed in both contracts with the front month opening with gains while the deferred months were lower. Early pressure was due to a higher crude oil contract as well as from a lower start to the Dow Jones. But cattle were able to brush off the early selling pressure and turn higher around midsession with support coming from a stronger Dow Jones and thoughts of improving economic outlook for the US. The lack of a cash trade pressured the live cattle.
Seling pressure continued to drive the cattle midweek, with both contracts slipping lower. Cattle opened the session mixed with live cattle lower while feeder cattle started the session mixed. It did not take cattle long to brush off the early pressure and pushed higher with support coming from a lower crude oil market and higher stock market. Gains were short lived though as cattle turned lower around midsession and continued to trade sloppy for the rest of the session. The lack of a cash trade pressured live cattle. A stronger corn market added selling pressure to the feeder cattle. Tuesday’s APHIS report showed 33 active screw worm cases in Mexico.
To close out the week, cattle pushed higher, bucking the idea that cattle have been seeing direction from crude and the Dow. Live cattle opened lower, spent much of the session in a tight range around unchanged, then moved higher at the end of the session to close with decent gains. Feeder cattle opened lower but slowly got back on the positive side and closed with solid gains. Cattle were able to shake off pressure from the losses in the stock market as the Dow was down over 450 points. Cash trade continues to be light this week. The recent wildfires in NE have burned more than 820,000 acres and left over 35,000 cattle displaced.
For the week, April live cattle closed at $238.710 up $4.65. March feeder cattle went off the board at $363.525 up $5.775 while April feeder cattle closed at $361.90 up $10.725.