Cattle opened the week mixed with live cattle trading under pressure while feeder cattle posted small gains. But by Tuesday cattle uncovered buy orders and rallied to pot new all-time record highs in both the live cattle and feeder cattle markets. Although cattle faded the session gains, cattle were still sitting at record highs. The record highs led to profit taking and technical selling to close out the week. Weather and war added influence on the cattle market.
Live cattle started the week under pressure while feeder cattle posted small gains. Live cattle did see support from a strong cash trade, but those gains were kept in check from pressure from profit taking after hitting new all-time highs last week. Tight supplies and strong demand continue to support feeder cattle. Workers at the JBS plant in Greeley ratified a 2-year agreement.
Heavy buying hit the cattle markets on Tuesday pushing both the live cattle and feeder cattle contracts to new all-time contract highs. But both cattle contracts faded the gains and closed off the session’s highs. Early support came from the lower crude oil and stronger Dow. Position squaring ahead of USDA’s April COF report was also evident.
Wednesday’s session saw live cattle close with small gains in the front month April, double digit losses in the middle months and with triple digit losses in the deferred months. Feeder cattle closed with large triple digit losses across the board. Cattle opened the session mixed with live cattle starting steady to higher while feeder cattle were steady to lower. Live cattle were seeing support from expectations of a steady to firm cash trade. Feeder cattle were under pressure from a stronger grain complex. Reports that new world screw worm cases are now being reported 90 miles south of the US Mexican border added pressure.
To close out the week ending Thursday, live cattle closed with heavy triple digit losses after opening higher. Feeder cattle closed with double digit losses in the front month April but with strong triple digit losses in the deferred contracts. Cattle opened the session steady to higher but by the middle of the morning session cattle ran into a buzz saw, pushing cattle lower. Early support was due to tight supplies and the likelihood that the border with Mexico and the US will remain closed due to new cases of new world screw worn being found only 80 miles south of the border. A strong cash trade added support early to the live cattle while a steady to lower corn market helped feeder cattle. But gains were trimmed by a stronger crude oil market and sloppy stock market, which pushed cattle algorithms into sell mode. Position squaring ahead of USDA’s April COF report was also evident.
The April COF report was neutral to friendly with the on feed estimate the friendliest number coming in 1% below expectations. The numbers for the report are On Feed: 99% (1% below expectations), Placed: 93% (as expected), and Marketing: 94% (as expected).
For the week, April live cattle closed at $249.95 down $1.825. April feeder cattle closed at $371.325 down $2.825.
Cattle Weekly Comments April 17
Cattle Weekly Comments April 17
Cattle opened the week mixed with live cattle trading under pressure while feeder cattle posted small gains. But by Tuesday cattle uncovered buy orders and rallied to pot new all-time record highs in both the live cattle and feeder cattle markets. Although cattle faded the session gains, cattle were still sitting at record highs. The record highs led to profit taking and technical selling to close out the week. Weather and war added influence on the cattle market.
Live cattle started the week under pressure while feeder cattle posted small gains. Live cattle did see support from a strong cash trade, but those gains were kept in check from pressure from profit taking after hitting new all-time highs last week. Tight supplies and strong demand continue to support feeder cattle. Workers at the JBS plant in Greeley ratified a 2-year agreement.
Heavy buying hit the cattle markets on Tuesday pushing both the live cattle and feeder cattle contracts to new all-time contract highs. But both cattle contracts faded the gains and closed off the session’s highs. Early support came from the lower crude oil and stronger Dow. Position squaring ahead of USDA’s April COF report was also evident.
Wednesday’s session saw live cattle close with small gains in the front month April, double digit losses in the middle months and with triple digit losses in the deferred months. Feeder cattle closed with large triple digit losses across the board. Cattle opened the session mixed with live cattle starting steady to higher while feeder cattle were steady to lower. Live cattle were seeing support from expectations of a steady to firm cash trade. Feeder cattle were under pressure from a stronger grain complex. Reports that new world screw worm cases are now being reported 90 miles south of the US Mexican border added pressure.
To close out the week ending Thursday, live cattle closed with heavy triple digit losses after opening higher. Feeder cattle closed with double digit losses in the front month April but with strong triple digit losses in the deferred contracts. Cattle opened the session steady to higher but by the middle of the morning session cattle ran into a buzz saw, pushing cattle lower. Early support was due to tight supplies and the likelihood that the border with Mexico and the US will remain closed due to new cases of new world screw worn being found only 80 miles south of the border. A strong cash trade added support early to the live cattle while a steady to lower corn market helped feeder cattle. But gains were trimmed by a stronger crude oil market and sloppy stock market, which pushed cattle algorithms into sell mode. Position squaring ahead of USDA’s April COF report was also evident.
The April COF report was neutral to friendly with the on feed estimate the friendliest number coming in 1% below expectations. The numbers for the report are On Feed: 99% (1% below expectations), Placed: 93% (as expected), and Marketing: 94% (as expected).
For the week, April live cattle closed at $249.95 down $1.825. April feeder cattle closed at $371.325 down $2.825.