Cattle started the week on the defense but shook off the early selling pressure to push higher the rest of the week. Live cattle managed to trade to another round of new all-time highs while feeder cattle managed to come close to their all-time highs. Strong demand and tight supplies continue to be the major supporting factors.
The week started with cattle opening steady to higher and extending gains early. Early support was due to technical buying as futures try to catch up with cash. But once cattle closed the gaps that were created after the tariff announcement, cattle turned lower. Selling expanded throughout the day and by the second half of the session, cattle were posting large losses across the board. Selling was tied to Friday’s slightly negative COF report, but most of the selling was tied to the downward spiral in the Dow and US dollar. Technically Monday’s close was not good for the feeder cattle as most months put in a key reversal down formation (higher high, lower low, and a lower close. A lower close Tuesday could be the sign that shows cattle have topped.
In true fashion and has been the case after every major retracement in cattle, cattle opened Tuesday’s session higher and extended gains throughout the day. Early support came from a stronger stock market from rumors of a softening attitude to China. Tight supplies and the expectations that supplies are only going to continue to tighten added support. Cash activity remains at a premium to futures, which added light support. Tuesday’s stronger close in feeder cattle negates Monday’s key reversal. Boxed beef prices were higher.
Wednesday’s session had cattle gapping higher and never really looking back. By the time the session ended, April through August live cattle were sitting at all-time contract highs while most of the feeder cattle months closed within a few dollars of their contract highs. Early support came from a de-escalation in the rhetoric aimed at China. It now seems the administration is looking at reducing tariffs against China saying the current tariff rate is unsustainable. This week’s cash activity has been quiet. A stronger stock market added support. Tight supplies and strong demand, and the thought that exports could see an increase added support.
A quieter tone fell over the cattle to close out the week. After opening the session steady to lower cattle traded mixed throughout most of the session. Technical selling pressure cattle early in the session with most of the selling tied to profit taking and the need to clean up an overbought market condition. Live cattle traded to a new all-time contract high Wednesday and that resulted in some money being taken off the table. Cash trade has been quiet this week. Last week’s export sales came in at a disappointing 10,336 MT, a 3-week low.
For the week, April live cattle were at $214.25 up $4.425. May feeders closed at $290.525 up $3.675.
Cattle Weekly Comments April 25
Cattle Weekly Comments April 25
Cattle started the week on the defense but shook off the early selling pressure to push higher the rest of the week. Live cattle managed to trade to another round of new all-time highs while feeder cattle managed to come close to their all-time highs. Strong demand and tight supplies continue to be the major supporting factors.
The week started with cattle opening steady to higher and extending gains early. Early support was due to technical buying as futures try to catch up with cash. But once cattle closed the gaps that were created after the tariff announcement, cattle turned lower. Selling expanded throughout the day and by the second half of the session, cattle were posting large losses across the board. Selling was tied to Friday’s slightly negative COF report, but most of the selling was tied to the downward spiral in the Dow and US dollar. Technically Monday’s close was not good for the feeder cattle as most months put in a key reversal down formation (higher high, lower low, and a lower close. A lower close Tuesday could be the sign that shows cattle have topped.
In true fashion and has been the case after every major retracement in cattle, cattle opened Tuesday’s session higher and extended gains throughout the day. Early support came from a stronger stock market from rumors of a softening attitude to China. Tight supplies and the expectations that supplies are only going to continue to tighten added support. Cash activity remains at a premium to futures, which added light support. Tuesday’s stronger close in feeder cattle negates Monday’s key reversal. Boxed beef prices were higher.
Wednesday’s session had cattle gapping higher and never really looking back. By the time the session ended, April through August live cattle were sitting at all-time contract highs while most of the feeder cattle months closed within a few dollars of their contract highs. Early support came from a de-escalation in the rhetoric aimed at China. It now seems the administration is looking at reducing tariffs against China saying the current tariff rate is unsustainable. This week’s cash activity has been quiet. A stronger stock market added support. Tight supplies and strong demand, and the thought that exports could see an increase added support.
A quieter tone fell over the cattle to close out the week. After opening the session steady to lower cattle traded mixed throughout most of the session. Technical selling pressure cattle early in the session with most of the selling tied to profit taking and the need to clean up an overbought market condition. Live cattle traded to a new all-time contract high Wednesday and that resulted in some money being taken off the table. Cash trade has been quiet this week. Last week’s export sales came in at a disappointing 10,336 MT, a 3-week low.
For the week, April live cattle were at $214.25 up $4.425. May feeders closed at $290.525 up $3.675.