Cattle started the week mixed with live cattle posting strong gains while feeder cattle slipped lower. The following session saw cattle post small losses, but then the bottom fell out of the cattle market in the last two sessions of the week. By the end of the week, all cattle contracts were posting heavy losses and showing signs of more trouble ahead.
The week started with cattle opening higher across the board with early support coming from technical support. Gains were kept in check by a sharply higher crude oil market and lower Dow. Early strength in the grains pulled the front month feeder cattle contracts off of their highs late in the session. Expectation for a steady to higher cash trade added support to the live cattle.
Tuesday’s session had cattle opening with small gains and cattle were able to extend session gains in the first half of the session but then cattle faded their gains to end the session mixed. Early support was due to technical buying as cattle have put in a few stronger sessions in a row, which has helped bring traders off the fence to go long cattle. The lack of an active cash trade pressured the live cattle market while losses in the feeder cattle contract were kept in check by a softer grain complex. Uncertainty about the economy added pressure late in the session as economists continue to talk about how the Fed needs to increase rates to counter the poor jobs report and increasing inflation numbers.
Heavy selling gripped the cattle market midweek. After starting the session steady to lower, cattle saw selling step in and quickly push cattle lower. The lack of a cash trade started the live cattle on the defense while feeder cattle were pressured by a higher grains complex. USDA is estimating 2025 beef production at 26.071 billion pounds. 2026 beef production is estimated at 25.035 billion pounds, 233 million pounds less than last month. 2027 beef production is estimated at 25.048 billion pounds, 220 million pounds less than last month. These numbers are friendly cattle. But technically cattle look challenged and appear to be looking to test major support lines further south.
Cattle started the session steady in the front month August but lower in the deferred contracts. Selling took charge early in the session and accelerated through midsession. Pressure was due to technical selling. Losses were trimmed by a lower crude oil, lower grain complex, and higher stock market. A disappointing cash trade pressured the live cattle as cash activity was reported taking place between $228 and $230, $5 to $7 below last week. Last week’s beef export sales pace was estimated at 14,426 MT, a 3-week low.
After the close, news broke that Tyson is either closing or selling three different plants across the US. This pressured cattle hard on Thursday and into Friday.
As of August 9, pasture and range conditions were estimated at 25% g/e, 28% fair, and 47% p/vp, unchanged from the previous week.
For the week, Aug closed at $223.625 down $8.075. Aug feeder cattle closed at $340.825 down $10.825.
Cattle Weekly Comments August 14
Cattle Weekly Comments August 14
Cattle started the week mixed with live cattle posting strong gains while feeder cattle slipped lower. The following session saw cattle post small losses, but then the bottom fell out of the cattle market in the last two sessions of the week. By the end of the week, all cattle contracts were posting heavy losses and showing signs of more trouble ahead.
The week started with cattle opening higher across the board with early support coming from technical support. Gains were kept in check by a sharply higher crude oil market and lower Dow. Early strength in the grains pulled the front month feeder cattle contracts off of their highs late in the session. Expectation for a steady to higher cash trade added support to the live cattle.
Tuesday’s session had cattle opening with small gains and cattle were able to extend session gains in the first half of the session but then cattle faded their gains to end the session mixed. Early support was due to technical buying as cattle have put in a few stronger sessions in a row, which has helped bring traders off the fence to go long cattle. The lack of an active cash trade pressured the live cattle market while losses in the feeder cattle contract were kept in check by a softer grain complex. Uncertainty about the economy added pressure late in the session as economists continue to talk about how the Fed needs to increase rates to counter the poor jobs report and increasing inflation numbers.
Heavy selling gripped the cattle market midweek. After starting the session steady to lower, cattle saw selling step in and quickly push cattle lower. The lack of a cash trade started the live cattle on the defense while feeder cattle were pressured by a higher grains complex. USDA is estimating 2025 beef production at 26.071 billion pounds. 2026 beef production is estimated at 25.035 billion pounds, 233 million pounds less than last month. 2027 beef production is estimated at 25.048 billion pounds, 220 million pounds less than last month. These numbers are friendly cattle. But technically cattle look challenged and appear to be looking to test major support lines further south.
Cattle started the session steady in the front month August but lower in the deferred contracts. Selling took charge early in the session and accelerated through midsession. Pressure was due to technical selling. Losses were trimmed by a lower crude oil, lower grain complex, and higher stock market. A disappointing cash trade pressured the live cattle as cash activity was reported taking place between $228 and $230, $5 to $7 below last week. Last week’s beef export sales pace was estimated at 14,426 MT, a 3-week low.
After the close, news broke that Tyson is either closing or selling three different plants across the US. This pressured cattle hard on Thursday and into Friday.
As of August 9, pasture and range conditions were estimated at 25% g/e, 28% fair, and 47% p/vp, unchanged from the previous week.
For the week, Aug closed at $223.625 down $8.075. Aug feeder cattle closed at $340.825 down $10.825.