Cattle slipped lower three out of four sessions this week ending Thursday giving back most of last week’s gains (feeder cattle). Cattle started the week lower with early selling tied to economic concerns. Reports of two bank failures over the weekend hit the financial sector hard and the expectation that this is not the end of the failures fed the selling frenzy. Losses were trimmed late in the session by the thought that maybe the Fed won’t increase rates March 22 due to the collapse of the two banks. Feeder cattle losses were kept in line from a lower corn market.
Both live and feeder cattle opened Tuesday’s session higher but quickly turned lower, staying on the lower side for the rest of the session. Feeder cattle saw pressure from the higher corn market. Live cattle losses were limited due to a stronger boxed beef market. There were no sales at the FCE online auction with bids at $163 to $164 and asks at $165.
Losses returned to the cattle market midweek with selling tied to economic concerns. Both live and feeder cattle fell lower throughout the session and closed with losses. Pressure came from economic worries as Credit Swisse’s stock dropped to an all-time low which pulled US banks stocks lower and increased worries of a recession. Losses were limited by expectations that Friday’s COF report will be friendly.
Cattle started Thursday’s session with small gains due to technical buying. Light support came from position squaring ahead of Friday’s COF report. Gains were kept in check from economic concerns as traders continue to take a wait and see attitude to see how many more banks report trouble and to see what the Federal Reserve will do with interest rates next Wednesday. Cash trade was reported taking place between $164 to $165. Last week’s beef export sales pace was estimated at 17,739 MT.
Tight supplies and expectations that supplies will remain tight throughout the year continues to put a floor under cattle. But economic concerns have shown that cattle are vulnerable to pressure. Prices are sitting at extremely high levels and producers should consider putting a floor under calves that are being born now. The unborn LRP program is a great tool to protect your investment. Call office for more details.
March’s COF report was generally as expected and a 6-year low. On Feed: 96% (96% expected), Placed: 93% (94% expected), and Marketed: 95% (96% expected).
For the week, April live cattle was at $162.325 down $1.95. March feeder cattle were at $188.85 down $2.625.
Cattle Weekly Comments
Cattle Weekly Comments
Cattle slipped lower three out of four sessions this week ending Thursday giving back most of last week’s gains (feeder cattle). Cattle started the week lower with early selling tied to economic concerns. Reports of two bank failures over the weekend hit the financial sector hard and the expectation that this is not the end of the failures fed the selling frenzy. Losses were trimmed late in the session by the thought that maybe the Fed won’t increase rates March 22 due to the collapse of the two banks. Feeder cattle losses were kept in line from a lower corn market.
Both live and feeder cattle opened Tuesday’s session higher but quickly turned lower, staying on the lower side for the rest of the session. Feeder cattle saw pressure from the higher corn market. Live cattle losses were limited due to a stronger boxed beef market. There were no sales at the FCE online auction with bids at $163 to $164 and asks at $165.
Losses returned to the cattle market midweek with selling tied to economic concerns. Both live and feeder cattle fell lower throughout the session and closed with losses. Pressure came from economic worries as Credit Swisse’s stock dropped to an all-time low which pulled US banks stocks lower and increased worries of a recession. Losses were limited by expectations that Friday’s COF report will be friendly.
Cattle started Thursday’s session with small gains due to technical buying. Light support came from position squaring ahead of Friday’s COF report. Gains were kept in check from economic concerns as traders continue to take a wait and see attitude to see how many more banks report trouble and to see what the Federal Reserve will do with interest rates next Wednesday. Cash trade was reported taking place between $164 to $165. Last week’s beef export sales pace was estimated at 17,739 MT.
Tight supplies and expectations that supplies will remain tight throughout the year continues to put a floor under cattle. But economic concerns have shown that cattle are vulnerable to pressure. Prices are sitting at extremely high levels and producers should consider putting a floor under calves that are being born now. The unborn LRP program is a great tool to protect your investment. Call office for more details.
March’s COF report was generally as expected and a 6-year low. On Feed: 96% (96% expected), Placed: 93% (94% expected), and Marketed: 95% (96% expected).
For the week, April live cattle was at $162.325 down $1.95. March feeder cattle were at $188.85 down $2.625.