Cattle pushed higher this week with most of the support coming from a lower crude oil market and higher Dow Jones. Technical buying added support as the deferred live cattle months traded to new contract highs while feeder cattle pushed to close half of the gap that was created Mid Oct. It was impressive to see cattle push higher and push to the upper end of their trading range, especially with news that USDA is looking at slowing re opening the border with Mexico.
Live cattle opened higher but trimmed gains going into the close. Feeder cattle followed the same path as live cattle, seeing strong gains early in the session but ended up cutting those gains in half by the close. Technical buying supported cattle. The lower corn market and early gains in the Dow were also supportive. The funds added to their net long positions in both live and feeder cattle last week.
Heavy buying showed up in both cattle contracts Tuesday as live cattle slowly climbed higher throughout the session and closed solidly higher. Feeder cattle spent the session on the higher side and closed with strong gains. Support came from the gains in the stock market with the Dow up over 1,000 points giving the most support.
Ag Sect. Rollins said USDA is looking at a “potential phased-in strategy” regarding reopening the border to Mexican cattle. The screwworm is currently 800 miles from the Arizona border so that crossing will likely reopen before the ones in TX and NM. Rollins said she expects an announcement on the border within the next month. USDA will open a sterile fly production facility in south TX in mid-April.
Buying continued to drive the cattle markets to wrap up the week, ending Wednesday as live cattle spent the session on the higher side and closed with solid gains. Feeder cattle climbed higher for the first half of the session, trimmed the gains a bit late in the session but still closed with good gains. Support came from the gains in the stock market, sharply lower crude oil market, and lower corn market. But gains were limited by slow cash trade this week. The JBS strike in Greeley, CO, is now in its third week. JBS has shifted some production to other plants but has not been able to fully offset the lost production. The World Agricultural Outlook Board estimated that as of March 24, 57% of US cattle were in areas experiencing drought vs. 45% at this time last year. 52% of hay acreage is in drought areas vs. 40% at the same time last year.
For the week, April live cattle closed at $246.20 up $7.50. April feeder cattle closed at $372.90 up $11.00.
For the month, April live cattle were up $10.80 and April feeder cattle were up $17.925.
Cattle Weekly Comments April 2
Cattle Weekly Comments April 2
Cattle pushed higher this week with most of the support coming from a lower crude oil market and higher Dow Jones. Technical buying added support as the deferred live cattle months traded to new contract highs while feeder cattle pushed to close half of the gap that was created Mid Oct. It was impressive to see cattle push higher and push to the upper end of their trading range, especially with news that USDA is looking at slowing re opening the border with Mexico.
Live cattle opened higher but trimmed gains going into the close. Feeder cattle followed the same path as live cattle, seeing strong gains early in the session but ended up cutting those gains in half by the close. Technical buying supported cattle. The lower corn market and early gains in the Dow were also supportive. The funds added to their net long positions in both live and feeder cattle last week.
Heavy buying showed up in both cattle contracts Tuesday as live cattle slowly climbed higher throughout the session and closed solidly higher. Feeder cattle spent the session on the higher side and closed with strong gains. Support came from the gains in the stock market with the Dow up over 1,000 points giving the most support.
Ag Sect. Rollins said USDA is looking at a “potential phased-in strategy” regarding reopening the border to Mexican cattle. The screwworm is currently 800 miles from the Arizona border so that crossing will likely reopen before the ones in TX and NM. Rollins said she expects an announcement on the border within the next month. USDA will open a sterile fly production facility in south TX in mid-April.
Buying continued to drive the cattle markets to wrap up the week, ending Wednesday as live cattle spent the session on the higher side and closed with solid gains. Feeder cattle climbed higher for the first half of the session, trimmed the gains a bit late in the session but still closed with good gains. Support came from the gains in the stock market, sharply lower crude oil market, and lower corn market. But gains were limited by slow cash trade this week. The JBS strike in Greeley, CO, is now in its third week. JBS has shifted some production to other plants but has not been able to fully offset the lost production. The World Agricultural Outlook Board estimated that as of March 24, 57% of US cattle were in areas experiencing drought vs. 45% at this time last year. 52% of hay acreage is in drought areas vs. 40% at the same time last year.
For the week, April live cattle closed at $246.20 up $7.50. April feeder cattle closed at $372.90 up $11.00.
For the month, April live cattle were up $10.80 and April feeder cattle were up $17.925.